Operations method for providing wireless communication services

ABSTRACT

The present invention is directed to an improved operations method for a wireless communication system. The improved business method, operations method, network and system of the present invention includes the steps of delivering cellular services to the mass market, reducing peak capacity, increasing overall capacity utilization, improving capital utilization, providing an “all-you-can-eat” pricing model, and designing capacity based upon where the users live, work, and play.

CROSS REFERENCE TO RELATED APPLICATIONS

This application is a continuation of and claims the benefit of thepriority of U.S. patent application Ser. No. 11/233,894, filed Sep. 23,2005, and entitled: “Operations Method For Providing WirelessCommunication Services,” now U.S. Pat. No. 7,483,689, issued Jan. 27,2009, which is a continuation of and claims the benefit of the priorityof U.S. patent application Ser. No. 09/772,065, filed Jan. 30, 2001, nowU.S. Pat. No. 6,959,183, issued on Oct. 25, 2005, and entitled:“Operations Method For Providing Wireless Communication Services AndNetwork And System For Delivering Same,” which claims the benefit of thepriority of Provisional Application Ser. No. 60/241,833, filed Oct. 20,2000, and entitled: “Improved Operations Method For Providing WirelessCommunication Services And Network And System For Delivering Same,” eachof which are hereby incorporated by reference.

FIELD OF THE INVENTION

The present invention relates to an improved business method, operationsmethod, network and system for delivering wireless communicationsservices. The business method, operations, and network and system of thepresent invention may be used separately, or in combination, Theinvention is adapted to higher overall network capacity, lower peakcapacity, and higher overall network usage, relative to prior knownmethods, networks, and systems for delivering wireless communicationsservices. The present invention may feature flat rate billing of users.This is in contrast to prior known wireless services, in which servicesare delivered on a per call or per minute usage charge basis. Thischange in pricing model affects usage and capacity of the network incertain ways. In a preferred embodiment, the system and network of thepresent invention employs flat rate bilking, achieves high capacityutilization of network components, and achieves lower peak capacity.These features enable the network and system of the present invention tohandle a higher overall volume of calls with less costly central networkcomponents and more streamlines operations than conventional cellularsystems.

BACKGROUND OF THE INVENTION

Wireless communications services represent the fastest growing segmentof the telecommunications industry worldwide. Although theTelecommunications Act of 1996 was intended to open the competitiveenvironment in the United States, allowing many new entrants into thelocal access loop, growth has been constrained by several factors. Someof these factors are endemic to any communications system (limitedbandwidth, high capital costs, etc.). Other constraints are imposed bythe business models that have come to be generally accepted in theindustry. Most land line and wireless operators typically derive themajority of their revenues and profits from a relatively few—“heavy” and“business”—users of their networks. The heavy and business user segmentshave come to be considered the most desirable segment of the wirelesscustomer population, due to their relative price inelasticity. Land lineproviders have typically focused on business users. Accordingly, perminute of usage pricing of cellular services has been adapted to thatconventional business model, which was introduced in the late 1980's.That conventional model, however, imposes constraints on operations andnetworks, and presents high usage charges to casual users. Thesepatterns have, in fact, been favored by cellular operators due to thehigh profitability levels they offer.

A conventional wireless system of the type known prior to the presentinvention is described by Robert C. Raciti, in CELLULAR TECHNOLOGY (July1995), which is incorporated herein by reference. Prior known cellularnetworks are typically constructed to achieve a relatively uniform levelof coverage over a preselected service area. The service area isextended to a greater metropolitan area, namely, major populationcenters and major highway connections. Generally, the service area isspecifically adapted to serve roaming traffic, which is billed at ahigher rate. Consequently, roaming is favored in prior known systems.The service has been marketed on the breadth of coverage as well ascomplex features, targeted at the heavy and business users.

Network capacity is rationed, to avoid over use of the network, bymaintaining pricing levels that tend to limit casual usage. Use ismetered by price, and constrained by that pricing within the designlimits of the system. When the existing wireless communicationsoperators have looked at moving their market focus from the typicalbusiness users to a broader market, they have typically introducedprepaid services that allow the consumer to control the costs but haverequired very high per minute usage charges.

Wireless communications networks using this conventional business modeltypically comprise three basic components: Cell sites with RF basestations; Mobile Telephone Switching Offices (MTSO); and mobile phonesthat are provided to subscribers. Each base station contains a radiotransceiver and controller, and provides, radio communications to themobile phone units operating in its cell. The cells are typicallyengineered into a network that is deployed in a hexagonal cell pattern,in order to provide local, regional, or national cellular coverage.

The MTSO links calls together using traditional copper, fiber optic,and/or microwave technology and acts as a central office exchange,allowing users to place a call on the local and long distance publictelephone systems or mobile to mobile traffic. It allows mobilecommunication devices in the cell to dial out and alerts devices in thecell of incoming calls. The MTSO continuously monitors the quality ofthe communications signal and transfers the call to another base stationthat is better suited to provide communications services to the mobiledevice.

The mobile communication devices comprise hand-held phones, car phones,notebook computers, personal digital assistants, pen-based computers,palm-top computers, pagers, hand-held e-mail devices (such as thoseproduced under the Blackberry™ brand), and portable data collectiondevices. The present inventors anticipate that, although the majority ofcellular traffic has traditionally been voice communications, therelative proportion of traffic that comprises data, text, andpotentially video, messages is increasing and is expected to increasedramatically in the coming years. The present invention is intended towork with all wireless communications devices. When these various typesof mobile units communicate with the network, they must register withthe system by subscribing with a wireless operator.

Most wireless operators of prior known systems have arrangements withother operators allowing users to roam. Roaming occurs when the mobileunit is outside the coverage area of their “home” cellular serviceprovider and an alternative cellular provider handles the communication.Mobile units may also be connected to the Public Switched TelephoneNetwork (PSTN) operated by an Incumbent Local Exchange Carrier (ILEC),Competitive Local Exchange Carrier (CLEC), Regional Bell OperatingCompany (RBOC), long distance carrier, or other telecommunicationsprovider.

The radio spectrum used for wireless (cellular) communications comprisesmany bands that are allocated and used for commercial, personal, andmilitary use. Fifty (50) MHz of spectrum is allocated to cellularnetworks in the 824-849 MHZ and the 869-894 MHZ bands. This spectrum hasbeen allocated into two 25 Mhz bands and has generally been allocated tovery large service providers. Other bands of spectrum have beenallocated for wireless communications. PCS is a wireless communicationsnetwork that operates at a radio frequency of 1.9 GHz. This spectrum hasbeen subdivided into three 30 Mhz and three 10 Mhz bands that are usedby both large service providers and many new, more innovative serviceproviders. The allocation of radio spectrum in the United States isdescribed in the NTIA Manual of Regulations and Procedures for FederalRadio Frequency Management, Ch. 4, at 4-4 to 4-91 (2000), which isincorporated herein by reference.

Several types of network access are available in the United Statesincluding, without limitation: Advanced Mobile Phone Systems (AMPS),Time Division Multiple Access (TDMA) (in two formats), and Code DivisionMultiple Access (CDMA). AMPS is the cellular standard that has beenextensively deployed in North America and has been commerciallyavailable since 1983. The current cellular standard describing accessmethods to the network is IS-553. It divides 50 MHZ of spectrum into 832frequency channels, each 30 KHz wide. Various organizations, such as thePortable Computer and Communications Association (PCCA), modemmanufacturers, computer manufactures, and service providers, have workedtogether in defining the IS-553 interoperability standard.

Time Division Multiple Access (TDMA) is a digital access method thatallocates time slots to different users, allowing them to share similarradio frequency channels. TDMA divides each frequency channel into sixtime slots and allocates two slots to each user. This time division ofthe carrier signal increases the network capacity by 300% (a factor of3). Standard IS-54, currently upgraded to IS-136, describes a dual modenetwork access method allowing mobile units the choice of using TDMA orAMPS operation.

Code Division Multiple Access (CDMA) sends multiple messages over thesame wide frequency channel that is decoded at the receiving end. Eachmobile unit in a cell is assigned a different spreading sequence. Thisallows multiple users to share the same frequency spectrum. The use ofCDMA increases network capacity by an order of magnitude (a factor often). CDMA network access standards are specified in standard IS-95,which is incorporated herein, by reference. TDMA and CDMA digital accessmethods offer superior performance in terms of higher capacity, improvedvoice quality, encryption for communication privacy, and integrationwith digital terrestrial networks.

Cellular Digital Packet Data (CDPD) is a technology standard sponsoredby the RBOCs and McCaw Cellular. CDPD overlays packet switching onto theexisting cellular voice network, and transmits data packets over theidle capacity. This packet overlay is based on an Internet protocol tobackbone and does not need the call setup procedures that are requiredfor switched voice calls. This makes CDPD adapted to short, burstymessage applications, such as point-of-sale (POS) credit cardverification, vehicle dispatch, package tracking, and e-mail. CDPDgenerally increases the network utilization, yet, excessive data trafficmay cause interference with existing cellular calls.

There are a number of other wireless applications that may be used inconjunction with cellular telephony or separately: digitalcommunications such as CDMA; cordless telephones; paging; specializedmobile radio (SNR); and satellite communication. Networks based ondigital communications typically have a greater capacity than analognetworks for carrying voice and data traffic than analog networks.

Michael E. Porter, in COMPETITIVE STRATEGY (1980), which is incorporatedherein by reference, described various stages through which productsprogress through their life cycles: introduction; growth; maturity; anddecline. Prior to the present invention, the cellular industry hasremained in its growth phase. Some characteristics of Porter's growthphase are: growth in use; widening of the buyer group; improvedreliability; competitive product improvements; increased advertising;increased channels of distribution; and high profit margins. Thecellular industry has shared these features prior to the presentinvention.

There are approximately 100 million cellular customers in the UnitedStates. Cellular service is growing at a rate of approximately 1 millionnew customers every month. The buyer group has widened, extending theinitial buyer group of large businesses to include most businesses.System reliability has improved, greatly. There have been manycompetitive product improvements, such as digital technologyadvancements, voicemail, encryption, and enhanced battery life. Cellularproducts and services are featured widely in advertising on television,radio, print, and on the Internet. Alternate channels of distributionare also becoming more popular. For example, retail office supply,electronic, and computer chains are actively marketing cellular phonesand services. Throughout this period of growth, cellular operators haveenjoyed high profit margins.

McCaw Cellular was one of the early entrants into the wireless telephonemarket. The business model developed by McCaw (AMPS) has come to begenerally accepted as the predominant business model for renderingcellular service, at least in the United States. A typical cellularsystem to configuration of the type that was known prior to the presentinvention is described by Heith Knightson, in D1—CELLULAR NETWORKINFRASTRUCTURE—VOICE AND SHORT MESSAGE SERVICES, TelecommunicationsStandards Advisory Council of Canada (1997), which is incorporatedherein by reference. As described by Knightson, AMPS is based on analogRF technology operating on frequencies 825-844 MHZ and 870-899 MHZ. Thedefinitive standard for AMPS voice services is TIA IS-53 CellularFeatures Description, which is incorporated herein by reference. Themechanisms to implement these services are given in TIA IS-41 CellularRadio Telecommunications Intersystem Operations, which is incorporatedherein by reference.

Prior to about 1997, AMPS was generally considered to be the maintechnology for providing mobile phone service. Currently, digitaltechnologies, such as TDMA and CDMA have gained ascendancy. Thesedigital technologies offer improved voice quality and increasedcapacity. Standards have been promulgated for each technology, which areincorporated herein by reference. Although the technologies for TDMA andCDMA are different from AMPS, some of the equipment, infrastructure, andstandards currently deployed for AMPS may be used in CDMA and TDMAnetworks. The radio portions (physical layer) of the mobile phones andbase stations have been modified to support these new RF technologies.

The cellular network is viewed by the PSTN as an alternative End Office,where voice traffic originates and terminates. The interface between thePSTN and cellular network operates SS7 protocols, which are incorporatedherein by reference. Within the cellular network, the signaling andvoice traffic operate over separate trunking facilities, just as in theland line network. The SS7 protocol is used to carry signalinginformation over these out-of-band common channel signaling facilities.This separation of signaling and voice traffic is also preservedover-the-air. Between the mobile phone and the base station, the ForwardControl Channel and Reverse Control Channel convey signalinginformation. Voice traffic is transmitted over the Forward Voice Channeland Reverse Voice Channel.

FIG. 1 illustrates the relationship between the cellular networkinfrastructure and the PSTN in wireless communications systems of thetype that were common in the cellular industry prior to the presentinvention. The IS-41 messages are routed via Signaling Transfer Points(STPs). The STPs handle network routing. In particular, the route to theHome Location Register (HLR) for a specific mobile phone is handled bythe STP. This has the advantage that, as the network expands and rangesof mobile phone numbers are assigned to different HLRs or new rangescome into service, only the routing tables in the STP need be updated.Mobile Switching Centers (MSCs) do not need to maintain full routingtables to all other MSCs. FIG. 2 illustrates the functions andinterfaces that support voice services. The interface reference pointsare defined in the IS-41 standard, which is incorporated herein byreference, to ensure correct interoperation of equipment.

A typical cellular system prior to the present invention was understoodto comprise the following functional elements:

-   -   Authentication Center (AC): The AC manages the authentication        information related to the Mobile Station (MS). The AC may, or        may not be located within, and be indistinguishable from a Home        Location Register (HLR). An AC may serve more than one HLR.    -   Base Station (BS): The BS describes all of the radio equipment        at a single location used for serving one or more cells. The        Base Station comprises a Base Station Controller and the Base        Station Transceiver systems.    -   Equipment Identity Register (EIR): The EIR maintains user        equipment identity information. The nature, purpose, and        utilization continues to develop and the present inventors        intend that all such uses to which these components may be put        are considered part of the present invention. The EIR may, or        may not, be located within, and be indistinguishable from a        Mobile Switching Center (MSC).    -   Home Location Register (HLR): The HLR is the location register        to which a user identity is assigned for record purposes such as        subscriber information (e.g. ESN, MDN, Profile Information,        Current Location, Authorization Period). The HLR may, or may not        be located within, and be indistinguishable from an MSC. The HLR        may serve more than one MSC. The HLR may be distributed over        more than one physical entity.    -   Integrated Services Digital Network (ISDN): The ISDN is defined        by the appropriate ANSI T1 Standards, which are incorporated        herein by reference.    -   Mobile Station (MS): The MS is the interface equipment used to        terminate the radio path at the user side. If provides the        capabilities to access network services by the user.    -   Mobile Switching Center (MSC): The MSC provides the interface        for user traffic between the cellular network and other public        switched networks, or other MSCs in the same or other cellular        networks.    -   Public Switched Telephone Network (PSTN): The PSTN is defined by        the applicable ANSI T1 Standards.    -   Visitor Location Register (VLR): The VLR is the location        register other than the HLR used by an MSC to retrieve        information for handling of calls to or from a visiting        subscriber. The VLR may, or may not be located within, and be        indistinguishable from an MSC. The VLR may serve more than one        MSC.        The main feature of the cellular network voice service when        compared with POTS (plain old telephone service) is the        geographical mobility of the phone. The equipment and interfaces        depicted in FIGS. 2 and 3 perform two main functions. First,        they transmit and receive voice signals over the radio spectrum.        This is primarily the function of the Base Station and Mobile        Station, which occurs over the Um interface. Second, they track        where each mobile phone is within the cellular network. This is        called “mobility management” and is performed by the MSC,        referencing and dynamically updating the HLR and VLR databases.        As shown in FIGS. 2 and 3, this occurs over the C, D, B, and E        interfaces.

The interfaces and standards associated with these two functions of RFtransmission and mobility management are distinct to cellular voiceservices. The other interfaces connect the cellular network to theexisting land line telephone network (PSTN or ISDN), supportauthentication of users and equipment (AC and EIR), or support specialfeatures such as the Short Message Service (as shown in FIG. 3), thatare not shown in the previous figures. These functions of networkinterconnection, security, and special services are not unique to thecellular network. Similar functions can be found in all land linetelephone networks.

The generally accepted consensus standards applicable to wirelesscommunications systems of the type known prior to the present inventionare identified in Table 1, each of which standards are incorporatedherein by reference:

TABLE 1 Standards Applicable to Wireless Communications InterfacesApplicable Standards Comments Interface ITU/ISO ANSI/TIA/EIA A: BS toMSC interface n/a n/aIS-634 Ai: MSC to PSTN interface X.25 SS7IS-93-A B:MSC to VLR interface X.25 SS7IS-41.2, IS-41.3 C: MSC to HLR interfaceX.25 SS7IS-41.2, IS-41.3 D: VLR to HLR interface X.25 SS7IS-41.2,IS-41.3 Di: MSC to ISDN interface ? T1.611IS-93-A E: MSC to MSCinterface X.25 SS7IS-41.2, IS-41.3, IS-41.4 F: MSC to EIR interface notdefined not defined; H: HLR to AC interface X.25 SS7IS-41.2, IS-41.3 Q:X.25 SS7IS-41.2, IS-41.3 Um: BS to MS interface, n/a n/aIS-54-B (TDMAand which corresponds to (AMPS), IS88 (NAMPS) the air interfaceIS-95-CDMA Notes: SS7 refers to the ANSI standards T1.11 1, T1.112 andT1.114. X.25 refers to ITU Recommendation X.25 and ISO 8878, ISO 8208and ISO 7776.

Consensus standards for wireless communications networks have beenpromulgated by various bodies. Table 2 identifies the most prominentstandards, each of which are incorporated herein by reference.

TABLE 2 Wireless Communications Standards ANSI/TIA/EIA Standards:TIA/EIA-660 Uniform Dialing Procedures and Call Processing Treatment forCellular Radio Telecommunications; Telecommunications IndustryAssociation TIA/EIA-664 Cellular Features Description;Telecommunications Industry Association TIA/EIA/IS-93 Cellular RadioTelecommunications Ai-Di Interfaces Standard; TelecommunicationsIndustry Association TIA/EIA/IS-41-C.1 Cellular Radio TelecommunicationsIntersystem Operations: Functional Overview; Telecommunications IndustryAssociation TIA/EIA/IS-41-C.2 Cellular Radio TelecommunicationsIntersystem Operations: Intersystem Hand-off Information Flows;Telecommunications Industry Association TIA/EIA/IS-41-C.3 Cellular RadioTelecommunications Intersystem Operations: Automatic Roaming InformationFlows; Telecommunications Industry Association TIA/EIA/IS-41-C.4Cellular Radio Telecommunications Intersystem Operations: Operations,Administration, and Maintenance Information Flows and Procedures;Telecommunications Industry Association TIA/EIA/IS-41-C.5. CellularRadio Telecommunications Intersystem Operations: Signaling Protocols;Telecommunications Industry Association” TIA/EIA/IS-41-C.6 CellularRadio Telecommunications Intersystem Operations: Signaling Procedures;Telecommunications Industrytry Association TIA/EIA/IS-732 CellularDigital Packet Data Specification; Telecommunications IndustryAssociation. TIA/EIA/IS-634 800-MHZ A-Interface Supporting AMPS, NAMPS,CDMA, TDMA Air Interfaces; Telecommunications Industry AMPS: EIA/TIA-553Mobile Station - Land Station Compatibility specification CDMA:TIA/EIA/IS-95 A Mobile Station-Base Station Compatibility Standard forDual-Mode Wideband Spread Spectrum Cellular System; TelecommunicationsIndustry Association TIA/EIA/IS-97 Recommended Minimum PerformanceStandards for Base Stations Supporting Dual-Mode Wideband SpreadSpectrum Cellular Mobile Stations; Telecommunications IndustryAssociation TIA/EIA/IS-637 Short Message Services for Wideband SpreadSpectrum Cellular System; Telecommunications Industry Association DMH:TIA/EIA/IS-124 Cellular Radio Telecommunications Intersystem Non-Signaling Data Communications (DMH); Telecommunications IndustryAssociation NAMPS: TIA/EIA/IS-88 Mobile Station - Land StationCompatibility Standard for Dual-Mode Narrow Band Analog CellularTechnology; Telecommunications Industry Association TIA/EIA/IS-91 MobileStation - Base Station Compatibility Standard for 800 MHZ AnalogCellular; Telecommunications Industry Association TDMA: TIA/EIA/IS-54-BCellular System Dual -Mode Mobile Station- Base Station CompatibilityStandard; Telecommunications Industry Association TIA/EIA/IS-136 800 MHzTDMA Cellular- Radio Interface - Mobile Station - Base StationCompatibility Standard; Telecommunications Industry Association ANSI T1Standards: T1.111 Signaling System Number 7 - Message Transfer Part(MTP) T1.112 Signaling System Number 7 - Signaling Connection ControlPart (SCCP) T1.114 System Number 7 - Transaction CapabilitiesApplication Part (TCAP) T1.611 Signaling System Number 7 (SS7) -Supplementary Services for Non-ISDN-Subscribers T1.209 Operations,Administration, Maintenance, and Provisioning (OAM&P) - Network Tonesand Announcements ITU-T Standards: T.50 International Reference Alphabet(IRA) formerly Alphabet No. 5 (or IA5) Other Related Documents:SR-TSV-002275 Notes on the LEC Networks; Bell Communications ResearchInc. TR-NWT-000776 Network Interface Description for National ISDN-1Customer Access; Bell Communications Research Inc.In addition to the above services, many wireless communications networksalso feature Short Message Service (SMS). SMS includes the followingadditional elements:

-   -   Message Center (MC): The MC stores and forwards short messages.        The MC may also provide supplementary services for Short Message        Service.    -   Short Message Entity (SME): The SME composes and decomposes        short messages. The SME may be implemented in many ways, such as        an operator assisted service or interactive voice response        service. An SME may, or may not be located within, and be        indistinguishable from, an HLR, MC, VLR, MS, or MSC.        The interface reference points in FIG. 4, which support the        Short Message Service, are:    -   Interface M is the SME to MC interface;    -   Interface N is the MC to HLR interface; and    -   Interface Q is the MC to MSC interface.

FIG. 3 depicts a cellular network, of the type known prior to thepresent invention, which further comprises a Message Center (MC) andShort Message Entity (SME), in addition to the infrastructure shown inFIG. 2. SMS is a data service available over the AMPS network. It isdefined in IS-41, and is included under voice services because it is anintegral part of the IS-41 specification. SMS allows a single packet ofdata to be transmitted to or from a mobile phone. SMS does not requirepacket fragmentation or re-assembly. Message integrity must bemaintained across all interfaces, including the air (Um) interface. TheSMS attempts to deliver the message whenever the mobile phone isregistered on the cellular network, even when the phone is engaged in avoice or data call.

By early 1998, although the market continued in what Porter defines asits growth stage, some of the constraints imposed by the acceptedcellular operation model had become apparent to the present inventors.Existing cellular business models in the United States had becomestagnant. Only one business model as the McCaw, “AMPS” model—had comeinto widespread use and the growth of the wireless market had beenlimited to relatively price-insensitive users based upon that model.Accordingly, the present inventors perceived that known business methodslimit future growth. These constraints include price, access tocredit-challenged users, ability of users to control their monthlyexpenditures under prior billing models, high network operating costs,high back office support costs, high capital costs, low capitalutilization, and other related limitations.

Capacity constraints were widely perceived to be a problem. Yet, theonly apparent technical solutions were approaches to expand peak systemcapacity. Techniques to utilize existing capacity more efficiently, orusing emerging technology through modification of the business model,were unknown.

For example, Motorola and Qualcomm have both been very active inadvancing the development of cellular technology. Kaschke, et al., U.S.Pat. No. 6,078,821, discloses a cordless radiotelephone system having anextendable geographic coverage area and a method therefor. Cukak, etal., U.S. Pat. No. 6,058,106, discloses a method for providing acentrally coordinated peer-to-peer wireless communications network.Smith, et al., U.S. Pat. No. 5,432,780, discloses a high capacitysectorized cellular communication system. Willkie, et al., U.S. Pat. No.5,956,651, discloses a cellular telephone interface system for AMPS orCDMA data services. None of these solutions, however, sought to resolveany capacity limitations through modification of the basic McCaw-type,cellular business model, described above.

Hence, prior to the present invention, entrenched business and pricingmodels limited the attractiveness of cellular services primarily tobusiness users, who were relatively insensitive to pricing. AverageRevenue Per User (ARPU) of many cellular operators of these systems hadstagnated. Most cellular networks were employing the same business andtechnical models, resulting in little relative differentiation betweencellular operators. Operators typically resisted the incorporation ofnew technology. Changes in one portion of a regional or nationwidenetwork could have implications for the entire network. Although mostsystems had been built to a relatively high peak capacity level, averagecapacity utilization in most systems was relatively low. Capitalutilization was low. Customers were severely segregated based uponpricing. Pricing, in turn, tended to restrict usage.

The cellular industry typically characterizes usage patterns based uponthe number of minutes a phone is used each month. Table 3 below,identifies typical usage patterns by the number of minutes used permonth:

TABLE 3 Traditional Market Segmentation Prior to the Present InventionBased upon Minutes of Usage (MOU) Usage Minutes of Use per Month AverageRevenue per User Very Heavy >500 >$100 Heavy 400-500 min./mo.  >$75Business 200-300 min./mo. $40-75 Consumer 100-150 min./mo. $25-40 MassMarket  15-20 min./mo. $15-25

In a cellular network of the type known prior to the present invention,the Mass Market customer group was considered sensitive to price,relative to heavy users. Prior to the present invention, due to thedeficiencies of the generally accepted business model for cellularoperations, marketing efforts were not generally devoted to thiscustomer segment. Yet, this lowest customer segment (in terms of usageand ARPU) is also the most numerous. Customer growth of most systems,therefore, was inherently limited by their business models. Designlimitations prevented them from expanding into the mass market.

These pricing constraints, and resulting constraints on overall usage,were simply accepted by most operators. These constraints enabledoperators to reduce the overall system capacity to a lower relativelevel, with the anticipation that consumers would shift their personaleconomics to afford these pricing constraints. Yet, this model did notavoid the substantial capital cost of building networks to service peakcapacity levels. Moreover, due to the slowness of incorporating newtechnologies, voice quality of cellular networks was generallyconsidered inferior to that of wire line networks. Hence, the priorknown cellular operations business models had failed to deliver cellularservices to the mass market, to improve quality, to reduce peak capacityand, therefore, the capital requirements on system networks, or toincrease overall capacity utilization.

Other business approaches had been tried but these too failed to deliverthe benefits of the present invention. For example, in about 1995, PHSintroduced in the Japanese market a strategy of pricing below othercellular providers and close to wireline providers. PHS was successfulin so called “telepoint” applications in which subscriber density isvery high. William Webb, UNDERSTANDING CELLULAR RADIO (1998), at183-190, which is incorporated herein by reference. The business modelwas well-received by consumers and the service enjoyed strong initialmarket penetration. The user demographics shifted rapidly fromtraditional business users to a mass market demographic user profile.Nonetheless, the PHS business model failed to deliver the uniqueadvantages of the present invention for several reasons, includingwithout limitation: unpredictability of the monthly costs; poor servicequality do to inferior technology; and chum.

Users employed the service for brief periods, then abandoned it. Thischum left the system operators with high initial costs of securing newcustomers and an insufficient time of retention of those customers torecover the acquisition cost through monthly service charges. Thisexperience merely reinforced the conventional wisdom that the dominantbusiness model, relatively high-priced cellular service through anetwork designed based upon coverage and designed to a high peakcapacity usage, was the appropriate business model for wirelesscommunications services.

Cellular networks have been deployed that incorporate some of the highcapacity features of the present invention, but these networks have beenoperated on the business model of prior known systems. For example,networks have been deployed in both Korea (Seoul) and Hong Kong thatemploy additional carrier signals to boost system capacity. Prior knowncellular systems typically employed a single carrier signal. Addingadditional carriers substantially increases system capacity.

These two high capacity Asian cellular systems, are heavy usage CDMAsystems designed around a convention cellular usage model, of the typeknown prior to the present invention. For example, the Seoul, Koreasystem features up to 6 carriers, on a CDMA network, using a substantialnumber of frequencies. The system is operated by SK Telecom and servesthe metropolitan area in Seoul. Hong Kong had an AMPS and TDMA network.Hong Kong deployed the first CDMA network system. It, too, featuresnumerous carriers and extremely high call capacity, due to the densityof downtown Hong Kong.

Both of these known, high capacity systems, however, employed aconventional business model, operations method, network and systemsapproach. They are designed and operated based upon coverage, ratherthan capacity. They do not employ the “wireline call model” of thepresent invention. They do not include the business method, operations,network, and/or systems improvements to address capacity, namely,providing service primarily where people live, work, and play. Althoughthese high-capacity networks in Seoul and Hong Kong featured multiplecarriers and substantially more capacity than prior known systems, theydid not include other of the unique features of the present invention.They are both “metered capacity” models, in which usage is billed basedupon the number of minutes used.

As a result of the extensive experience of the cellular industry, byearly 1998, the generally accepted business model for operating awireless communications network involved: primary business users,numerous additional features for which surcharges applied, relativelyhigh ARPU, and widespread system coverage to secure additional revenuesfrom roamers passing through the system and paying higher roamingsurcharge rates.

Neil J. Boucher, in THE CELLULAR RADIO HANDBOOK (1990), which isincorporated herein by reference, discloses a typical demand curve for awireless system of the type known prior to the present invention. Thatcurve is depicted in FIG. 4. Such a prior known wireless system has twopeak times during the day. These occur at approximately 11 am and 7 μm,as illustrated in FIG. 4. In addition, the changes in demand from peaktime to low-usage time are significantly high. In contrast, the demandcurve for a wireless system according to the present invention, as shownin FIG. 5, is relatively flat and does not have the peaks andsignificant deltas in demand that occur in prior known wireless systems.FIG. 5 illustrates a typical busy hour utilization of a preferredembodiment of a wireless system according to the present invention.

In 1997, the present inventors began development of a new business modelfor delivering wireless communications services. The present inventorsdeveloped a new method, operations, network, and system for deliveringwireless communications services. This invention offered low costcellular service to a more numerous mass market, rather than merely to alimited submarket of relatively price insensitive business users.

Prior known wireless communications operators typically targeted onlyhigh-end market segments, namely, heavy users and business users, andnot the consumer or mass markets. ARPU values in the consumer ($25 to40) and mass market ($15 to 25) were generally understood to besubstantially lower than ARPU's for business users ($40 to 75) and heavyusers (>$75). There was no motivation to target lower ARPU customersprior to the present invention. Addressing these consumer and massmarkets through prior business models would result in higher capital andcustomer acquisition costs, lower revenues, and lower profitability. Norwas it obvious that increasing market penetration in these consumer andmass market segments would increase revenues. Particularly in view ofthe, high initial cost of acquisition and high operating costs of mostcellular systems, customers at the low ARPU levels associated with theconsumer and mass markets would have to be retained for long periods oftime. Thus, the prior known business methods, operations, networks, andsystems failed to address the unique problems addressed and resolved bythe present invention.

The present inventors conducted extensive studies of the demand forcellular services. Based upon these investigations, the presentinventors discovered that there were several basic flaws and omissionsin the prior known business methods for delivering cellular services.Specifically, rather than being an unprofitable customer segment, themass market and consumer markets could be viable, provided sufficientcosts were driven out of the cellular operation.

This had not been done by prior known business methods. The presentinventors discovered that, contrary to the conventional view, as unitprice and monthly service fees fell, consumer interest (in the massmarket and consumer market segments) increased to relatively high levelsof penetration that would support a viable business model.

In order to be profitable, however, additional costs must be driven outof the traditional method of delivering cellular services. Specifically,the high operating costs, high capital costs, and relatively lowcapacity utilization characteristic of prior known systems each impededthe efficiencies necessary to serve these additional market segments. Asthe market had already demonstrated, the requisite degree of costsavings was not possible using the prior known methods of renderingcellular services.

The present inventors identified several critical factors in achievingthe cost savings necessary effectively to expand cellular service tothese additional market segments: improved capacity utilization andreduced peak system capacity; targeted area coverage; unproved capitalutilization; channels; reduced interconnect costs; improved back officeoperating efficiency; and improved network operating efficiency.

Particularly in view of a number of recent technical advances, capacityis highly dependent on the network technology employed. Webb, at101-149, which is incorporated herein by reference. Several advances inrecent years have enabled operators to enhance capacity from existingbandwidth and use bandwidth more efficiently, although other operatorspreferred legacy technology and the associated capacities. The presentinventors believe that CDMA technology offers certain capacityadvantages relative to rival technologies. Specifically, through the useof CDMA technology, the capacity of the system could be increased by afactor of two in terms of calls per sector, relative to rival technicalformats. Similarly, the data rate can be increased from about 8 k toover 100 k, with projections of up to 2.4 Megabits per sector. Thepresent inventors anticipate continued advances in network capacity.

Coverage is one of the primary design criteria for any cellular network.Prior known networks are designed to provide extensive coverage for thebasic service area, as well as for the surrounding area and majortransportation arteries. Although the cost of this additional coverageis substantial, revenues from roamers entering the system and using thisextended coverage area typically defray the added cost and generatesubstantial additional revenues in prior known cellular systems. Thecapacity and signal strength are optimized for coverage, and inparticular, in-vehicle use. In addition, the capacity of prior knownsystems is typically built out to the peak demand of the system,throughout the service area. Although this results in higher capitalcost, that capital cost is typically recovered through roaming charges.

The present inventors, however, have designed the system coverage basedupon extensive market studies identifying patterns of living, working,playing, shopping, and schooling (“live, work, and play”) of the primaryservice area. The system is designed to provide strong signal coverage,tailored to the usage pattern in each cell in the primary service area.The system of the present invention is preferably designed forin-building, as opposed to merely in-vehicle use. No capacity is builtinto an extended service area or arteries. System coverage is designedspecifically for local service, without regard to roaming. Nonetheless,major interconnection arteries are covered by the service of the presentinvention.

This provides two benefits. First, the coverage area of the presentinvention is typically more limited than coverage of systems of the typeknown prior to the present invention. FIGS. 8 and 9 are maps depictingcoverage patterns of a system prior to implementation of a systemaccording to the present invention and after such implementation,respectively.

Second, rather than building peak system capacity throughout thecoverage area, the present invention tailors capacity within each cellto expected local traffic patterns. This allows a reduction in systemcost. Fewer cells are built and the capacity of the cells that are builtis increased relative to prior known systems. The present inventorsbelieve that this approach enables the system to achieve effectivecoverage for the service area with only about 80% of the number of cellsites of prior known systems, when sites that are related primarily tohighway and roaming coverage are removed.

Capital utilization is also enhanced by the present invention as thereduced coverage sites are provided and the cost of capacity is reducedthrough the use of CDMA technology. In a preferred embodiment of thepresent invention, the capital expenditure per subscriber is reduced,from 12 to 25% of the capital expenditure per subscriber in year 1relative to prior known systems, to 25 to 50% of the cumulative capitalexpenditure per subscriber in year 10. Moreover, due to the highercapacity utilization of the present invention, the difference betweenthe present invention and prior known systems in terms of cumulativecapital expenditure per unit of usage is even more substantial. Thepresent inventors estimate that cumulative capital expenditure per unitof usage (Erlang) in year 1 preferably is only about 5% to 15% of priorknown methods. In year 10, it is as low as one half.

Based upon these factors, the break even point for a network of thepresent invention is substantially sooner than for a network of the typeknown prior to the present invention. In the preferred embodiment of thepresent invention, the break even point is 12 months, as shown in FIG.19. The calculations illustrated in FIG. 19 are based upon the “TypicalPCS Company” model, as disclosed by the firm Donaldson, Lufkin &Jenrette IN THE GLOBAL WIRELESS COMMUNICATIONS INDUSTRY (1999), which isincorporated herein by reference. The present invention may achievebreak even at the end of year one, relative to year three in systems ofthe type known prior to the present invention.

Channel costs of marketing cellular services comprise one of the mostsignificant cost elements for a cellular network. Cellular services ofthe type known prior to the present invention are typically highlydiversified and segmented, featuring highly complex pricing plans andusage models. The selling activity requires highly trained customerservice representatives to explain the various phones available, theirfeatures, and the relative benefits and disadvantages of the variousservice plans relative to a particular customers usage pattern. All ofthis adds substantial selling cost to a wireless operator. The presentinvention, in contrast, features one or two phones, a simple plan, andhigh volume usage. Rather than selling through specialized channels, thepresent invention may sell through mass merchandise outlets. Advertisingand marketing efforts are oriented to the point-of-sale and limit salespersonnel involvement. Each of these features further reduces theselling expense associated with the present invention.

Interconnect costs represent a significant cost factor to the systemoperator in systems of the type known prior to the present invention.Specifically, when users are charged by the minute, they tend to leavetheir phones off when they are not placing a call in order to avoidreceiving charges for unwanted calls, or they avoid giving callers theirphone number. This results in the system operator generating far moreoutgoing calls than are received within the system. In a typicalcellular system of the type known prior to the present invention, thebalance between calls generated by the user and calls received isapproximately 75% outgoing; 25% incoming. This means that there is agreater chance of the user making a call to a number outside the servicearea than of receiving one from outside the service area. Interconnectcharges, therefore, tend in the direction of the system operator havingto pay to operators of other systems fees for outward bound calls madefrom users within the system.

The present invention, however, seeks to reduce substantiallyinterconnect charges by modifying the user's calling patterns. As theuser enjoys unlimited use, without any additional charges for thathigher use, the user tends to leave their phone on, even when they arenot making a call. The present inventors have observed that usagepatterns tend to be more balanced, in the range of 60/40 (20 pointdifference), in contrast to the 75/25 (50 point difference) balanceobserved in prior known systems. The present inventors believe that,over periods of several years, usage would migrate toward a balance of55/45 or 50/50 in a preferred embodiment of the present invention. Atthat point, the interconnect charges will offset one another,eliminating this cost from the system.

Enhanced network operating efficiencies are another feature of thepresent invention providing a benefit relative to prior known systems.These benefits may include: reduced direct labor costs; reduced leasecosts as a result of fewer, higher capacity cell sites; simplifiedoperations; and improved back office operating efficiencies.

The present invention allows the operator to reduce the total number ofcells in the system. This employs less expensive capital equipment andimproves the efficiency of maintenance and repair activities, as bothfewer cells are used and distance for traveling to the outlying cellsthat have been eliminated is reduced. As fewer cells are built into thesystem, lease costs are reduced for cell towers and cell sites. The costof the fixed network and facilities are reduced relative to systems ofthe type known prior to the present invention.

The operating model of the present invention is preferably based uponmonthly, bill-in-advance, pay-in-advance service, which is differentthen the pay-in-arrears system generally used for credit-worthy businesscustomers or the prepaid system typically used for consumers. Theoperator, therefore, is not dependent on variable usage patterns, whichresult in fluctuating revenues. Revenues are based upon service and notthe specific features employed from call to call. The revenue stream isleveled, offering the operator greater predictability and certainty.

Back office expenses are reduced dramatically, relative to prior knownsystems. One of the largest operating cost elements in prior knownsystems is customer service to handle billing inquiries. A typicalcellular billing statement itemizes every call and details the variousfeatures (roaming, call waiting, etc.) accessed. This level of detailtypically generates billing questions and challenges, all of which mustbe handled in a person-to-person discussion with the customer servicedepartment. The cost of handling this call volume can be one of thelargest single cost elements in the back office operation of a typicalprior known system. The present invention, however, eliminates theseexpenses. Credit checks are unnecessary. Account receivable balances arenot permitted to accrue. As service is flat rate and pre-paid, there areno charges based upon the number of calls, length of calls, and featuresaccessed. Itemized billing statements may be eliminated and replaced bysimple flat rate bills. Accounts receivable and collection activitiesare eliminated, further simplifying back office operations.

Further, the present invention substantially reduces activation-relatedcosts. The phones of the present invention are sold preactivated. Eachphone already has loaded into it a unique cellular number upon leavingthe factory. This reduces the effort required to activate. Rather thansupplying skilled customer service personnel to assist in activation,activation may be conducted by the customer upon leaving the store. ThisOver the Air (Activation) Subscriber Provisioning (OTASP) feature of thepresent invention substantially reduces operations costs, and simplifiesthe customer's role in activating the phone. OTASP results insubstantial cost savings to the system operator.

None of these improvements were obvious at the time the invention wasmade. In contrast, the incumbent business model has been and remainsbased upon minutes of usage, the time of day, and features accessed.Absent substantial elimination of costs from the existing model, theshift to lower ARPU users is not desired by system operators.

By combining these features in various combinations, to expand capacityutilization and reduce systems, capital, and operating costs, theadvantages of the present invention are fully achieved.

In his recent book, Webb presents a simple and accessible primer onwireless communications systems. William Webb, UNDERSTANDING CELLULARRADIO, Artech House, Inc. (1998), which is incorporated herein byreference. Webb describes a number of generally accepted network designfactors prior to the present invention. Webb notes that prior knownsystems provided only enough capacity for the expected number ofsubscribers; if needed, additional capacity would be built into thesystem at a later date. Webb confirms, that prior to the presentinvention: “[t]o minimize system cost and roll-out time, operators needto insure that they use the fewest number of cell cites possible toprovide the required coverage. The problems would be familiar to thecellular operators who expend considerable time and effort planningtheir networks to use the minimum number of base stations for therequired coverage.” Id. at 95. Webb further teaches that in cases wherethere was not sufficient capacity in the network, “the cells had to bemade smaller.” Id. at 98. Webb amplifies that “microcells are the onlyway to improve capacity in city centers.” Id. at 99.

Yet, the present inventors have adopted a different approach to networkdesign. By designing for capacity, rather than coverage, the presentinventors have been able to further reduce the number of cells, withoutdeploying substantial numbers of microcells. The present inventors havefound that, by aggressively managing the cost of their wirelesscommunications services and deploying appropriate technology, preferablyCDMA technology, they have been able to increase capacity utilization ofthe network, dramatically reduce their operating costs, pass substantialsavings on to the consumer (who enjoys not only greater access to theirwireless communications service, but does so at a lower price), andenjoy ample margin to run the business profitably on a sustaining basis.

OBJECTS OF THE INVENTION

It is therefore an object of the present invention to provide a low costwireless communications service.

Another object of the present invention is to provide a low costwireless communications service that is targeted to market segmentsbeyond the traditional heavy and business users.

A further object of the present invention is to provide a low costwireless communications service that is attractive to mass market users.

An additional object of the present invention is to provide a low costwireless communications service that is based upon flat rate pricing.

Yet another object of the present invention is to provide wirelesscommunications services at a high level of capacity utilization of thecellular network components, relative to prior known systems andnetworks.

It is an object of the present invention to provide a high qualitywireless communications service.

Another object of the present invention is to provide a wirelesscommunications service at a low flat rate monthly charge.

A further object of the present invention is to provide a wirelesscommunications service that enables higher capacity utilization of thewireless network.

An additional object of the present invention is to provide a wirelesscommunications service in a fashion that reduces peak capacityutilization relative to prior known networks.

Yet another object of the present invention is to provide wirelesscommunications services that are preactivated.

Another object of the present invention is to provide wirelesscommunications services while substantially reducing the customerservice requirements of prior known wireless networks and systems.

It is an object of the present invention to adapt prior known wirelesscommunications services to improve capacity utilization of the networkor system.

An additional object of the present invention is to reduce peak callingcapacity.

Another object of the present invention is to adapt the wirelesscommunications services to a targeted coverage area.

Yet another object of the present invention is to achieve improvedcapital utilization from the wireless communications network and system.

A further object of the present invention is to broaden the channelsthrough which wireless communications services are marketed.

It is another object of the present invention to extend the channels formarketing wireless communications services to mass merchandisers.

An additional object of the present invention to reduce system ornetwork interconnect costs to other system operators.

Another object of the present invention is to improve back officeefficiency.

Yet another object of the present invention is to reduce back officeoperating costs.

A further object of the present invention is to improve networkoperating efficiency. It is an object of the present invention to reducenetwork operating costs.

It is an object of the present invention to bundle long distance servicewith local wireless communications services.

Another object of the present invention is to combine free unlimitedlong distance service with local wireless communications services.

An additional object of the present invention is to offer a variety ofenhanced features with wireless communication services.

A further object of the present invention is to provide voice mail. Yetanother object of the present invention is to provide call waiting. Itis an object of the present invention to provide paging.

Another object of the present invention is to provide data services.

An additional object of the present invention is to provide Internetservices.

A further object of the present invention is to provide tailoredinformation services adapted to the individual user.

Yet another object of the present invention is to model subscriberbehavior and adapt the services delivered to the user based on heuristicstudies of the subscriber's preferences and behaviors.

It is an object of the present invention to provide position locationinformation.

Another object of the present invention is to provide advertising tousers or subscribers.

An additional object of the present invention is to facilitatemCommerce.

A further object of the present invention is to safeguard users' andsubscribers' privacy.

Additional objects and advantages of the invention are set forth, inpart, in the description which follows and, in part, will be obviousfrom the description or may be learned by practice of the invention. Theobjects and advantages of the invention will be realized in detail bymeans of the instrumentalities and combinations particularly pointed outin the appended claims.

BRIEF SUMMARY OF THE INVENTION

As illustrated in the accompanying diagrams and disclosed in theaccompanying claims, the invention is an improved wirelesscommunications service, business method, operation method, and networkand system for delivering the same.

In one embodiment, the present invention is an improved business methodfor a wireless communication system, comprising, either alone or invarious combinations, the steps of:

-   -   Flat rate billing, not based on individual minutes of use (MOU)        or number of individual calls;    -   Unlimited use, not packaged based on individual minutes of use        or number of individual calls;    -   Providing service where users “live, work, and play”;    -   Achieving wireline phone functionality, as a replacement for the        standard wire-line phone (>800 MOU/month);    -   Mapping customer demand geographically, by where users “live,        work, and play” and by demographics of key market segments;    -   Providing service only in a pre-determined area (no roaming),        along with the potential for exchange services with other        markets;    -   Bill-in-advance;    -   Pay-in-advance;    -   No service contract required;    -   Limited hand set and features;    -   No detailed billing;    -   Operating expense at or below about 85% of the flat monthly fee;    -   ARPU equal to or below about $40.00 per month; and    -   Deploying “islands” of service.

In an alternative embodiment, the present invention is an improvedoperations and selling method, comprising, either alone or in variouscombinations, the steps of:

-   -   Flat Rate billing;    -   Bill-in-Advance;    -   Pay in Advance;    -   No detail call record;    -   Service in predetermined calling area, with no roaming;    -   Pre-paid long distance (“gas tank”);    -   Simple service offering;    -   Centralized systems which enable aggressive and effective cost        reduction;    -   Cost-driven (vs. revenue-driven) operational model;    -   Reduced churn rate to less than 4% after three months or more        (increased stickiness);    -   Operating expense per subscriber per month less than or equal to        about $26;    -   Cash cost per unit less than or equal to about $20;    -   Acquisition costs per subscriber less than or equal to about        $230;    -   ARPU less than $40.00 per month;    -   Margin greater than or equal to about 15%;    -   Single-rate plan;    -   Achieving better balance in the mix of incoming and outgoing        calls to reduce interconnect charges;    -   Reducing or eliminating collection and bad debt expense;    -   Reduced sales cycle time;    -   Phone-in-a-box, containing all the information you need on the        outside of the package;    -   Pre-programmed phones;    -   Limited handset selection;    -   Single-band phones;    -   Customer Activation;    -   Wholesale discount only—no commissions or residuals;    -   Limited service features;    -   Familiar features requiring no training;    -   Inventory kept with distributor;    -   Phone bundled with service;    -   Simplified sales process;    -   Reduced Cost per Gross Add; and    -   Separate branding of an “all-you-can-eat” service (flat        rate/unlimited service).

In a preferred embodiment, the present invention is an improved networkand system for delivering wireless communications services, comprising,either alone or in various combinations, the steps of:

-   -   Generating Erlangs per subscriber per square mile greater than        or equal to about 0.03E;    -   In building coverage greater than or equal to about 12 db;    -   Tailoring the network to capacity;    -   Targeting cell site deployment;    -   Covered Population per site greater than 4,000;    -   Second Carrier frequency, upon or within about three months        after launch;    -   Frame error rate less than about 2%; and    -   Enhanced capacity network offering unlimited use (>800 minutes        per-month).

It will be apparent to persons of ordinary skill in the art that variousmodifications and variations may be made to the business method,operations method, network and/or system of the present invention,without departing from the scope or spirit of the invention. Forexample, although service is preferably unlimited by number of minutesof use or number of calls, service may also be bundled in predeterminedamounts, such as 400, 600, 800, or 1,000 minutes a month, or any otherlevel of minutes per time period. Margin may be maintained at any levelthat supports a sustainable business.

Prior known bundled minute of use service offerings have ranged up toseveral hundred dollars a month (ARPU) for 2,000 or 3,000 minutes ofuse. ARPU values of the present invention, therefore, may be set at anylevel sufficient to distinguish prior service offerings, for example, at$30, $35, $40, $45, or $50 per month. Similarly operating expense persubscriber may be maintained at any sustainable level below ARPU, suchas $26 at an ARPU of $30 or any comparable level on the cost continuum.Similarly, the time period of the service offering is not critical andthe present inventors intend to cover offerings at comparable rates(ARPU per month or minutes of use per month) that may be offered forshorter (hours, days, or weeks) or longer (multiple month, quarter, yearor longer) periods of time.

Churn may be reduced below levels experienced by unlimited serviceofferings such as PHS, at any time after a subscriber has been added,whether at 3, 4, or 12 months, or at any other time. Acquisition costsper subscriber may be less than or equal to about $500 or any lowerlevel, such as $230.

The level of Erlangs per subscriber, per square mile, may be maintainedat any level greater than or equal to about 0.03E of prior knownsystems, such as 0.04, 0.05, 0.055, or higher. In-building coverage maybe maintained at greater than or equal to about 12 db, 15 db, or 18 db,or any other level that distinguishes the in-building coverage of thepresent invention from prior known systems. Covered Population per Sitemay be greater than or equal to about, 4,000, 6,000, 8,000, 10,000, orany level along a continuum greater than 4,000. Similarly, the averagenumber of minutes of use per month may be maintained at any level graterthan about 400, such as 600, 800, 1,000, or any other level along thatcontinuum.

The Frame Error Rate may be relaxed from 1%, to 2%, or 3%, or any otherlevel that continues to provide effective service. The equipment used isnot critical, provided that it provides the requisite capacity, quality,and reliability. Thus, it is intended that the present invention coverthe modifications and variations of the invention provided they comewithin the scope of the appended claims and their equivalents.

It is to be understood that both the foregoing general description andthe following detailed description are exemplary and explanatory only,and are not restrictive of the invention as claimed. The accompanyingdrawings, which are incorporated herein by reference, and constitute apart of the specification, illustrate certain embodiments of theinvention, and together with the detailed description, serve to explainthe principles of the present invention.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic diagram showing the relationship of a cellularnetwork of the type known prior to the present invention to the publicswitched telephone network.

FIG. 2 is a schematic diagram showing the interrelationship of theprincipal components of a cellular system adapted for voicecommunications of the type known prior to the present invention.

FIG. 3 is a schematic diagram showing the interrelationship of thevarious components of a cellular system adapted for both voice and dataservices, of the type known prior to the present invention.

FIG. 4 is a graph illustrating a typical demand curve for a wirelesssystem of the type known prior to the present invention.

FIG. 5 is a graph illustrating the busy hour utilization of a wirelesssystem of the type known prior to the present invention.

FIG. 6 is a graph depicting the predicted change in System RF BlockingRate upon conversion of a system of the according to the presentinvention.

FIG. 7 is a graph of estimated demand vs. capacity upon conversion to asystem according to the present invention.

FIGS. 8A-D are maps depicting system coverage of a cellular system priorto implementation of a system according to the present invention.

FIGS. 9A-D are maps depicting system coverage of a cellular systemaccording to the present invention.

FIG. 10 a is a graph depicting actual network performance of both asystem known prior to the present invention and a system according tothe present invention with respect to combined dropped and blockedcalls.

FIG. 10 b is a graph depicting actual network performance of both asystem known prior to the present invention and a system according tothe present invention with respect to dropped call percentage.

FIG. 10 c is a graph depicting actual network performance of both asystem known prior to the present invention and a system according tothe present invention with respect to blocked call percentage.

FIG. 11 is a graph of the usage distribution for the teen segment, ascontemplated by the present inventors.

FIG. 12 is a graph of the usage distribution for the college studentsegment, as contemplated by the present inventors.

FIG. 13 is a graph of the usage distribution for the secondary incomespouse segment, as contemplated by the present inventors.

FIG. 14 is a graph of the usage distribution for the new wage earnersegment, as contemplated by the present inventors.

FIG. 15 is a graph of the usage distribution for the blue collarsegment, as contemplated by the present inventors.

FIG. 16 is a graph of the usage distribution for all other users, ascontemplated by the present inventors.

FIG. 17 is a graph of the usage distribution for all users comparingpredicted data with the actual data.

FIG. 18 is a slide illustrating the break even point for animplementation of a system according to the present invention.

FIG. 19 is a Table comparing the expected relative Capital Utilizationrequirements between GSM and CDMA systems of the types known prior tothe present invention and the present invention.

FIG. 20 a is a chart illustrating the re-engineering of the coststructure of a wireless system according to the present invention.

FIG. 20 b is a chart illustrating the re-engineering of the coststructure of a wireless system according to the present invention.

FIG. 21 is a flowchart depicting the process flow through the backoffice of a preferred embodiment of the present invention.

FIG. 22 is a flowchart depicting the process of set up and activation ofa preferred embodiment of the present invention.

FIG. 23 depicts a process for adjusting the financial aspects of anaccount, for a preferred embodiment of the present invention.

FIG. 24 is a flowchart depicting how to add a phone to an account in apreferred embodiment of the present invention.

FIG. 25 is a flowchart depicting how to change general information on anexisting account in a preferred embodiment of the present invention.

FIG. 26 is a flowchart depicting a process for changing a phone numberand adjusting acceptance of optional features in a preferred embodimentof the present invention.

FIG. 27 is a flowchart depicting a process for changing credit cardinformation in a preferred embodiment of the present invention.

FIG. 28 is a flowchart depicting a process for changing recurring creditcard payment information in a preferred embodiment of the presentinvention.

FIG. 29 is a flowchart depicting a process for transferring a phone in apreferred embodiment of the present invention.

FIG. 30 is a flowchart depicting a process of “hotlining” and theprocess of restoring hotlined service in a preferred embodiment of thepresent invention.

FIG. 31 is a flowchart depicting a process for removing a phone from amulti-phone account in a preferred embodiment of the present invention.

FIG. 32 is a flowchart depicting a process for disconnecting a phone ina preferred embodiment of the present invention.

FIG. 33 is a flowchart depicting a process for dealing with frequentlyasked questions in a call center of a preferred embodiment of thepresent invention.

FIG. 34 is a flowchart depicting the steps involved in handling billingquestions in a preferred embodiment of the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Reference will now be made in detail to a preferred embodiment of theimproved business method of the present invention, an example of whichis illustrated in the accompanying drawings. First, the basic concept ofthe service offering of the present invention will be discussed inbroad, functional terms. Next, examples will be given of the operationof the invention with respect to various embodiments, namely: a businessmethod, the operations method, and the network and system of the presentinvention, identifying preferred elements of each embodiment. Additionaldetail will be provided with respect to the operations method of thepresent invention with particular attention to a preferred embodiment ofthe customer service functions of the back office. Third, the conversionof a system of the type known prior to the present invention toincorporate features of the present invention will be discussed.

Basic Concept of the Service Offering

The present invention comprises a realigned service offering forwireless communications services. One objective of the present inventionis to develop a high-value, fixed-price, wireless communication serviceoffering that features high voice quality, is directed to the massmarket, and succeeds in realigning the service offering to the lowestcost position. Specifically, the present inventors have developed a newbusiness model that is targeted at achieving high subscriberpenetration, namely greater than 10 or 20 million nationwide. This levelof penetration, however, cannot readily be achieved by focusing only onhigh-end business users.

One component of the present invention, therefore, is to develop an“every day” wireless focus by attracting a mass market subscriber base.The business method of the present invention relies upon the uniquecombination of technology, operations, and network engineering toachieve the objects of the invention. In a preferred embodiment, theinvention employs CDMA one technology in an optimal manner, to gainmaximum competitive advantage from the technical features and advantagesthat CDMA offers. CDMA technology greatly enhances the capacity of thenetwork. By providing a flat rate unlimited access offering, the presentinventors are able to exploit the inherent technical advantages of CDMAto achieve higher capacity utilization than was typical of systems ofthe type known prior to the present invention. This provides a vehiclefor wireless mass communication.

The networks of the present invention may be deployed as“islands”—isolated from sister systems by a geographic area whereservice is not available. The “islands” of the present invention may bedetermined based upon market studies. By deploying the network on an“island” basis, the present inventors are able to exploit the latestdevelopments of the technology building an incremental installed base ineach new service area in which they offer their services. This allowsthe present inventors to capitalize on future technical gains, on alocal, regional, and/or national basis, and to improve isolated islandswithout widespread disruption of a larger network.

The present inventors anticipate that the business method, operationsmethod, and network of the present invention will evolve as theirservice offering matures. Initially, local and toll calling, voice mail,and long distance service (to be provided by others) are offered in alocal metropolitan area. Additional features may be provided, such ascall waiting, call forwarding, call barring, and call conferencing. Inaddition, data products may be available in the form of information,sports, stocks, weather, and any other information of interest. Thiscould be based on Internet-provided content or content from any othersource that is housed on or linked into the wireless communicationnetwork. Advertising feeds could be supplied over Short Message Service(SMS) or other methods.

In the next phase of evolution of the invention, the present inventorsanticipate internalizing long distance service within the productoffering and providing a unified message product on a regional basis.One of the features that enables the present inventors to hold costsdown is the lack of “roaming.” Nonetheless, exchange services could beoffered between networks of the present invention on a regional ornational basis.

As was the case with the initial stage, call waiting, call forwarding,call barring, and call conferencing may all be offered at this stage. Inaddition to basic data information (information, stocks, sports,weather, etc.), the present inventors anticipate that enhancedinformation download services would be provided at this next stage. Inaddition to providing advertising feeds over Short Message Service(SMS), advertising feeds could be provided over voice, or alternativetechnologies. In addition, greater customization could be built into thesubscriber unit, providing the customer additional options.

The present inventors anticipate that in the third stage of evolution ofthe invention, long distance service would be provided over IPprotocols, across the footprint of those networks deploying theinvention. This could occur on a national basis. All of the callwaiting, call forwarding, call barring, call conferencing, as well asadditional features may be included. Further, mobile data productofferings may be developed to enhance the information download serviceand basic information services. Advertising may continue to be provided,as appropriate. In addition, as the path of evolution progresses, thepresent inventors anticipate handset exchanges and upgrade programswould be implemented in order to allow consumers to continue to exploitthe most advanced technology and service offering.

The realigned service offering of the present invention features anumber of discrete components that enhance its attractiveness to thecustomer and its effectiveness as a network, as a method of operation,and as a business model. These include, without limitation:

-   -   Designing the network for capacity, rather than merely        geographic coverage.    -   Providing coverage primarily in the areas where the users        substantially live, work, play, shop, go to school, and        undertake most of their day-to-day activities, and principal        small corridors between them.    -   Achieving efficient capital utilization of the network.    -   Pursuing an enhanced channel strategy in order to reduce the        cost of selling and delivering the services to the lowest        reasonable point.    -   Managing variable interconnect costs to eliminate the net        outflow of interconnect charges that might otherwise occur.    -   Improving back office operating efficiency.    -   Enhancing network operating efficiency.

Increased capacity is an important function of many of the embodimentsof the present invention. Table 4 provides some approximations of thecapacity, in terms of simultaneous calls per sector/carrier for varioustelephony applications.

TABLE 4 Simultaneous Calls Per Sector Carrier Capacity By ApplicationApplication Present Future Mobile 15 18 Mixed 19-20 23-24 Fixed 24 28Present Invention 19 19-28

As can be seen from Table 4, the present invention provides in thesetting of a wireless communication network some of the capacityadvantages that are available today only through a wireline or WirelessLocal Loop (WILL) telephony system and would be available to otherwireless carriers only at some date in the future.

The present inventors believe that the use of the CDMA air interfaceprovides distinct advantages in achieving the preferred capacities ofthe present invention. The air interface has evolved from the IS-95AStandard (19 calls per sector) in 1998 to the IS-95B Standard (22 callsper sector) to the current IS-95C Standard (39 calls per sector).Present inventors anticipate further evolution of the IS Standard toimplement additional improvements. All of these standards are backwardcompatible. In addition, while the data rate available under IS-95A wasonly 8K, IS-95B offered 64-115K. Is anticipated further improvementswill offer substantially higher rates.

In order to optimize the coverage of the network of the presentinvention, the design objective in a preferred embodiment of the presentinvention is to cover a greater metropolitan area with a strong signaland provide a capacity advantage over systems to the type known prior tothe present invention. The signal is designed to achieve effectivelevels of in-building coverage, rather than in-vehicle coverage typicalof prior known systems. The coverage objective is to cover substantiallythose areas where the lifestyle of the user leads them to work, live,play, shop, or attend school. This is in distinct contrast to systems tothe type known prior to the present invention, in which the system wasdesigned for geographic coverage to enhance service to mobile users whotravel through the area. Nonetheless, the present invention also covers,in preferred embodiments, the major interconnection arteries within thegeographic area.

In a preferred embodiment of the present invention, this results infewer cell sites being required to provide the requisite level ofservice. For example, the present inventors anticipate that for anexample market, such as the San Diego market, substantial reductions inthe number of cells could be achieved, while also achieving the goals ofthe present invention. Table 5 summarizes this effect:

TABLE 5 San Diego Marketplace The Present Air Touch Sprint PBMSInvention Anticipated 181 c. 190 c. 280 155 Number of Cells

As a result of the business method, operational methods, and network ofthe present invention, the present inventors anticipate that overallcapital expenditures, both on a per subscriber and on a per Erlangbasis, can be reduced dramatically. FIG. 19 provides informationregarding the anticipated capital expenditure per subscriber. (Alldollar values used in this application are in approximately 2000dollars. The present inventors expressly intended that these valueswould be adjusted by the user to accommodate changes in the time valueof these amounts and/or improvements in technology that may alter therelative values of various elements of the present invention.)

As can be seen from FIG. 19, capital expenditure is high in the earlyyears and fails off as each of the systems mature. The height of theinitial peak for systems such as the Power Tel (GSM) and Sprint (CDMA)systems depicted in FIG. 19 are higher in the earlier years than that ofthe present invention. The commutative capital expenditure persubscriber for each system is anticipated to be lower in the succeedingyears as the systems mature. Yet, the present invention retains adistinct advantage. The same pattern appears with respect to CapitalExpenditure per Erlang. The Power Tel and Sprint systems aresubstantially higher in early years from system launch than is thepresent invention. Similarly, the present invention may be able tosecure savings of up to two thirds in later years, relative to thecommutative Capital Expenditure per Erlang of these prior known systems.

Channel costs are reduced in a preferred embodiment of the presentinvention in a number of ways. The product offering is preferablysimple, namely, one phone featuring a limited number of rate plans.Sales are preferably oriented to mass merchandising and mass retailoutlets, rather than dedicated specialty stores that require higherinvestment in real estate and operating expense. Advertising is directedat mass channels. Similarly, marketing efforts are directed in areaswhere traffic generation is high, such as mass merchandising retailers.Limiting the involvement of sales personnel substantially reducesselling expenses. By packaging the “phone-in-a-box” with all of thematerial marketing information contained on the outside of thepackaging, most of the consumers' questions can be answered by a reviewof the product offering. The first month's service is preferablyincluded. No extensive and lengthy explanations are required by aspecialty sales force, further reducing selling expense.

In contrast, most operators of wireless communications systems of thetype known prior to the present invention offer the consumer abewildering array of options, which also serves to increase theoperator's direct selling expense. For example, Cingular Wireless,formerly Bell South, offers several series of wireless calling plans atthe “home,” “region,” and “nation” level. At the time of filing of thisapplication, for example, Cingular offered nine different home callingplans, six different region calling plans, and six different nationcalling plans. Each has different monthly costs, numbers of includedminutes per month, costs of additional units per month, and includedfeatures. Similarly, AllTell Cellular offers three local plans, fiveregional plans, and six national plans all of which have differentpricing, features, and number of included minutes per month. AT&T andSprint offer comparable levels of diversity. Even Nextel.com, a serviceprovider that presents itself as offering progressive plans, includingan unlimited service plan for about $99 per month, a price pointsubstantially higher than that of the present invention, offers a widearray of plans. For example, Nextel's offering includes digital cellularservice (locally, national, and worldwide), a digital radio, businessnetwork, business directories, messaging services, online wireless,worldwide service, and additional service features such as: one secondrounding, caller ID, call waiting, call forwarding, voice mail, noroaming, additional lines, three-way calling, and call restriction. Ateach of its levels of rate plan, Nextel offers several options withdifferent pricing, numbers of included minutes, and features. Inaddition, virtually all of these cellular operators offer an array ofhandsets, featuring numerous features and options.

The net result of the diversity of handsets, rate plans, and serviceofferings, is not only consumer confusion and bewilderment, maintainingthis array of options increases the operators' direct selling expense.It requires the operator to maintain a highly trained workforce at thepoint of sale, in order to answer and resolve the consumer's questions.It requires substantial inventory. The present invention avoids thiscomplexity and its attendant effect to complicate the sales process andincrease direct, as well as indirect, selling expenses.

The present inventors anticipate that better balance can be achieved bythe present invention on inter-connect costs than was available throughsystems of the type known prior to the present invention. The presentinventors further believe that their flat rate pricing encouragesbalance by eliminating minute of use-based pricing. Specifically, thepresent invention may allow the inter-connection cost balance to migratefrom approximately 65/35 to 65/45 or a number closer to 50/50 over aperiod of years. Although the present inventors initially anticipatedthat this process may take about 4 years, the present invention hasachieved unexpected results, in which a 53/47 inter-connect balance hasbeen achieved within approximately a year and a half.

The present invention also obtains numerous network operatingefficiencies. In a preferred embodiment of the present invention, directlabor cost is reduced. This is, in part, a result of deploying fewercells, larger cells, and using less equipment. Similarly, lease costsare reduced. This is a result of the reduction of the number of cellsites and towers, as well as a reduction of the level of investmentrequired for fixed network and facilities. The simpler operating modelof the present invention, relative to prior known systems is enhanced bythe use of larger cells, flat monthly rate structures versus minutes ofuse revenue-based structures, and basic services versus feature-drivenpricing. Back office operating efficiencies are enhanced and costreduced due to simplified prepaid product offering.

Components of the Business Model; Operations; and Network and SystemsEmbodiment

The present invention comprises various embodiments, that may be usedseparately, or in combination with one or both other embodiments. Viewedgenerally, the embodiments of the present invention are as: a businessmodel; operations; and network and system. In turn, those embodimentseach comprise one or more functional elements. These elements may beused separately, or in combination with one another, or elements of onetype of embodiment may be used in combination with elements of theothers.

The business method embodiments of the present invention compriseinnovations in one or more of the following areas: business method;economic model implementing that method; capital utilization;“all-you-can-eat” pricing model; capacity driven service; “wireline”design for capacity rather than coverage; based upon where people live,work, and play; and various operational features and functions.

The operational embodiments of the present invention comprise one ormore of the following features: marketing; brand strategies andimplementation; selling channels; sizes, configurations, and locationsfor selling; product design and selection; phone selection; phoneactivation; appropriate staffing in each functional area and balancebetween each functional area in order to achieve the cost advantage ofcertain embodiments of the invention; driving substantial costcomponents out of, or at least down relative to prior known cellularsystems; financial modeling; back office operations; billing; financialmodels; call center; customer service; maintenance; and NetworkOperations Center (“NOC”).

The network and systems embodiments of the present invention comprise:network design; equipment; systems; traffic modeling; growth;deployment; systems integration; maintenance; and financial modeling.

Turning now to each of these basic embodiments, it will be apparent topersons of ordinary skill in the art that each of such embodiments mayin turn be embodied in various ways. The assignee of the presentinventors has embodied various aspects of the present invention in aservice offering in the Chattanooga, Tenn. market, that is sold underthe “CRICKET” brand. The business method, operations, and network andsystems of the present invention have been referred to by the presentinventors as the “Cricket Model.”

The business method of the “Cricket Model” features any one or more ofthe following improvements: simplified back office; network design forin-building coverage; lower marketing costs; and flat-rate fee forservice. The Cricket Model offers “wire line” type service on a cellularnetwork, namely, it provides service where people “live, work, andplay.” The system is designed for “capacity” rather than “coverage.”This business model, however, is very different in many respects fromthe model for cellular systems of the type known prior to the presentinvention. Consequently, the Cricket Model was received skeptically bypersons skilled in the wireless industry, who were experienced with moretraditional cellular models.

The operations of the present invention differ in any one or more of anumerous respects from the operations of cellular systems of the typeknown prior to the present invention. These operational features havebeen referred to by the assignee of the present invention as the“Cricket Differentiators”. These include, but are not limited to: callcenter; customer operations; internal infrastructure; long distance;voice over IP; billing; trouble ticketing; and Network Operations Center(NOC).

The operations of the present invention involve a number of improvementsrelative to prior known cellular systems. The billing system is modifiedand improved. The format, customer service screens and interfaces, andreturn and repair functions are improved. Simplified “one-line billing”is preferred. The billing is based upon a flat rate for cellularservice. Preferably, the rate is low enough to attract additional userswho are eliminated by traditional metered billing formats based uponminute of use charges. Payment is requested in advance, eliminating orsubstantially reducing accounts receivable. Service is terminated fornon-payment, eliminating or reducing collections operations.

The present inventors anticipate serving market segments that operatorsof wireless communication systems the type known prior to the presentinvention have either failed to serve, or in which they have shownlimited or no interest. In particular, individuals residing inhouseholds with incomes less than approximately $75,000 per year,generally have not been a target of marketing efforts by prior knowncellular system operators. This is primarily because the targets ofthose systems have been business and heavy users who are relativelyinsensitive to price. Individuals who do not have credit or whose creditis challenged are also not well served by systems of the type knownprior to the present invention. Many system operators require creditchecks as well as execution of a formal cellular services contract withconsumers. Credit checks alone may eliminate 30 to 60% of potentialcustomers.

The present inventors have identified a number of demographic segmentsthat they believe have been under served or not been the subject ofsignificant interest by operators of prior wireless communicationsystems. These include, without limitation: New wage earners (age 25 to35); Blue collar workers; Secondary income spouses; College students;and Teenagers. The present inventors have developed demographic profilesof each of these key market segments and have found certain featuresthat tend to characterize these various segments. New wage earners arelikely to move residences frequently. They likely spend discretionarytime outside of their primary residence. They focus on convenience andusage. In addition, the present invention may readily become theirprimary phone.

Blue-collar workers tend to have a more stable residence. The presentinvention allows easy and convenient outbound communications. Businessusage tends to be limited in this segment and usage instead tends tofocus on friends and family. The present inventors anticipate that, inthis market segment, the present invention will evolve to become theprimary phone in approximately 18 to 24 months of usage.

Secondary income spouses also tend to have stable residences.Nonetheless, they tend to be very mobile within a local area,particularly with their children. They are looking for affordableconvenience. Although they may expect limited usage of the phone, theytend to evolve into a pattern of primary usage of the wireless phone ofthe present invention in a period of 24 to 36 months.

College students tend to move their residence frequently, and areunlikely to be in any one place for an extended period of time. Thismarket segment was generally overlooked by operators of conventionalsystems prior to the present invention due to the high chum rate at theend of semesters. This group tends to use wireless communicationservices for convenience and tends to use the phone heavily. It quicklybecomes their primary phone.

Teenagers also tend to exhibit a stable pattern of residence but arelooking for ways to assert their independence. The present inventionprovides convenience and privacy and quickly becomes their primaryphone.

Some of the features of traditional wireless communication systems areparticularly ill-suited for these market segments. For example,traditional operators tend to require extended (for example, one year)contracts. Credit checks may prove problematic for certain individuals.The present invention, eliminates these disadvantages. As a result ofthe realigned service offering of the present invention, neitherpre-subscription contracts nor credit checks are necessary. Althoughthey could be employed, they tend to increase costs and limit thedemographic segment to whom the services may be extended.

In the present invention, training procedures are modified andimplemented. In addition, improvements are implemented to bring cost pergross add down to preferred levels. The sales strategy approaches highvolume, low value channels that were typically shunned by conventionalcellular operators. Indirect selling is implemented.

In a preferred embodiment of the present invention, company stores aremodified and adopt a unique look and feel as well as format and style.Indirect costs are managed, in order to drive the cost of selling to thelowest possible level. Mass merchandising channels may be used. Inaddition, the offering of products (phones) service packages,accessories, and functions is curtailed to simplify the offering andreduce costs. The processes and procedures employed in selling aremodified to reduce the cost to convert a new customer to the service ofthe present invention.

Customer service is improved to lower acquisition cost. Over-the-airactivation is implemented to enable mass merchandising channels andreduce or eliminate activation costs. In order to overcome thesubstantial biases of the industry toward the prior known models andmethods, the present inventors implemented orientation, training, andeducational materials and programs. Office space costs were reduced inview of the favorable cost structure the invention offers.

The assignee of the present inventors has also included long distanceservice within the present invention. The long distance service of thepresent invention is preferably pre-paid. The assignee of the presentinvention accepts payment by credit card and cash, and envisions thatvarious alternative payment plans may be included within the presentinvention, including, without limitation: monthly billing; automaticdebiting of credit cards; over-the-air purchase authorization andpayment; and any other appropriate billing and payment mechanism. Longdistance traffic is routed from the user's phone, to the switch of thepresent invention, to a dedicated long distance service box, the balancein the user's pre-paid account (“gas tank”) is then checked and, if theuser's balance is adequate, the call is routed through a long distanceservice provider.

Some preferred embodiments of the present invention include an internalnetwork to facilitate the operational improvements of the presentinvention at reduced cost. These may include: billing; hot lines; callcenter; trouble ticketing; NOC; and engineering. The internal network ofthe present invention offers substantial advantages. It is preferably a“voice over IP” network. It operates as a Frame Relay network. Markethubs are connected to regional offices, which are in turn connected toassignee's operation center in San Diego. This internal network providesdata and operational support, as well as Voice over IP service, withinassignee's operations. The present inventors anticipate that thisinternal network could also carry local or long distance trafficrelating to the “Cricket” business model, operations, and network andsystem of the present invention.

The network and systems of the present invention are adapted to providecapacity to service users where they live, work, and play, rather thancoverage of a geographic area, as in prior known cellular systems. Thesefeatures are depicted in the maps, as shown in FIGS. 8 and 9. Toaccomplish this coverage pattern, the footprint of the system ismodified relative to prior known cellular systems. Specifically, thecoverage footprint of the present invention is a function of density,competition, and locations and attractions where those users live, workand play within the service area. The system design was adapted toprovide high capacity in those areas, at the expense of low usageportions of prior known cellular networks where capacity may have beenmaintained for roaming use. This can be seen by comparing FIG. 8(pre-cut coverage) with FIG. 9 (post-cut coverage). Although various ofthe embodiments of the present invention could offer roaming, it is nota critical or essential element of the present invention and iseliminated from preferred embodiments.

The “capacity” vs. “coverage” feature of the present invention isimplemented through various design criteria: adding cells in downtownareas; rework of network design to focus on traffic patterns;modification of the equipment; modifying the geographic extent ofcoverage; and altering the amount of traffic various cells are carryingin the system. In order to implement some of these improvements, someusers' phones were changed out to enable the system to enhance capacity.

The network modifications of the present invention, relative to priorknown inventions, include a number of modifications to improve capacity.For example, the “in-building” coverage of the network is improved,relative to “in-vehicle” bias of most prior known systems. The presentinvention pays particular attention to improving capacity at malls,buildings, intersections, and other locations where people live, work,and play. Cell sites and their placement are improved. The system istailored to “capacity,” rather than “coverage” based upon load analyses,switch statistics, and other functional aspects of the system. Theseimprovements were arrived at empirically and through the use of variousmodeling techniques that are unique to the present invention.

The specific improvements comprise various stages and types. Theinventors implemented Enhanced Variable Rate Code (EVRC) technology.According to the present invention, high usage subscribers are offeredimproved equipment to enable the network to exploit these capacityimprovements. The present inventors have selected Lucent equipment forvarious reasons, including reliability, and capabilities of thatequipment, relative to other network components. The inventors haveadded a second carrier signal and anticipate adding additional carriersas the need for additional capacity grows.

When the present inventors deployed the “Cricket” business model in theChattanooga, Tenn. market, they took over from the prior systemoperator, ChaseTel. That system incorporated a traditional design of thetype that was known in the art prior to the present invention. The“Cricket” business model, however, requires increased capacity to handlea higher anticipated number of users and higher levels of use thananticipated by prior known metered-use based systems. The presentinventors, therefore, found the existing business model, operation, andnetwork and system of the ChaseTel system to be poorly adapted to thepresent invention.

Some of these shortcomings exhibited as a high rate of dropped andblocked calls, as shown in FIGS. 10 a-c. These failures resulted becausethe prior system was not adapted to optimal placement and sizing of cellsites, inadequate capacity, and an existing design bias toward coverageand in-vehicle use, in contrast to capacity and in-building use. Thisresulted in substantial over-subscription of the switch and highblocking levels.

The present inventors implemented various modifications to adapt theexisting Chase network to the “Cricket” business model, operations, andnetwork and system. Erickson's proprietary “Smart Rate” III serviceversion of EVRC was instituted, increasing capacity modestly. Thepresent inventors subsequently implemented Erickson's “Smart Rate” IVservice which provided additional capacity improvements. The Frame ErrorRate was relaxed. Traditional operators maintain a Frame Error Rate atabout 1 percent. The present inventors believe that the Frame Error Ratemay be relaxed to about 2 percent (or potentially 3%), increasingsystems capacity, without significant degradation of signal quality andquality of service.

The present inventors modeled the behavior of the network and modifiedthe size and location of cells. The present invention employs variousmodifications and variations in the design of the service area toimprove the capacity of the wireless services offered. Specifically, newsites were defined, some sites were moved or modified, sites wereremoved from service, and new sites were added. The present inventorsalso replaced equipment to add an additional carrier and anticipate thatfurther additional carriers may be added as capacity demand grows.

The improvements of the present invention enable the wireless network toachieve increased capacity utilization. The present invention tends toincrease substantially individual user call volume. By eliminating theincreased cost of additional calls and service at particular times ofday, users tend to use their phone more and at more varied timesthroughout the day. This increase in overall call volume enables thenetwork and systems components to be utilized more fully, throughout agreater proportion of the day, resulting in increased capacityutilization.

Although user demand is increased in the present invention, that demandis spread more evenly throughout the day, reducing the peals callingcapacity of the system relative to prior known wireless communicationsnetworks and systems. As peak demand is reduced, so too are the capitaland operational constraints in meeting the former peak demand.

The present invention targets the coverage area to a more limitedgeographic area. Rather than emphasizing coverage throughout as wide anarea as possible, the present invention emphasizes capacity to handlethe demands of the local area. In a preferred embodiment, the presentinvention is adapted to a local calling area, based generally on theRand McNally Trade Area (RMA), rather than seeking extensive coverage ofthe surrounding area. This more limited coverage reduces the number ofcell sites and reduces the capacity of the fewer remaining cells tolevels needed to service the local traffic demand, rather than buildingin substantial over capacity to handle roaming.

These improvements, individually and collectively, enable the businessmethod of the present invention to achieve higher capital utilization.Cells are not built in anticipation of demand and are instead adapted todemand as it develops. Building fewer cells reduces capital demands.Higher capacity utilization enables the capital that is expended to beemployed more efficiently.

Cellular services have traditionally been sold through variousrelatively high cost channels, prior to the present invention.Specifically, large advertising campaigns are met on the customer end byspecialized equipment and service offerings. The present inventionadapts the services to the most popular types of cellular phones andreduces the variety of service offerings. The need for specializedselling is eliminated. Simplified in this manner, the services of thepresent invention may be sold through mass merchandising channels thathave not been exploited by prior known wireless offerings.

Interconnection is roughly balanced in the present system by shiftingthe balance of call volume from outgoing calls to other operators to amore even balance between called made and calls received outside thesystem. This is accomplished by the pricing structure of the presentinvention, which eliminates or at least reduces the disincentives ofprior known systems to leaving the phone on so that it can receiveunexpected calls.

The present invention improves back office efficiency dramatically. Bysimplifying billing and instead issuing a single flat rate bill, thecosts of billing are reduced from prior known systems in which complex,detailed bills are rendered. Accounts receivable are eliminated incertain embodiments in which the services are pre-paid. Moreover,customer service costs are dramatically reduced by eliminating detailedbilling, and the numerous questions and complaints that follow frommessage unit pricing.

Finally, the network and system of the present invention improve systemnetwork operating efficiency. The present invention combines any of anumber of improvements to enhance the pool of available customers whiledriving costs from the system: improved capacity utilization; reducedpeak system capacity; targeted area coverage; coverage generally basedupon Rand McNally Trade Area (RMA); improved capital utilization;channels; mass merchandising and simplified direct sales; reducedinterconnect costs; reduced back office operating efficiency; andimproved network operating efficiency.

Several of the figures provided depict the improvement in performance ofthe present invention. FIG. 6 depicts the predicted change in System RFBlocking Rate upon conversion of a system according to the presentinvention. FIG. 7 estimates demand vs. capacity upon conversion to asystem according to the present invention. FIG. 10 a depicts actualnetwork performance (in terms of dropped and blocked calls) of both asystem known prior to the present invention and a system according tothe present invention. FIG. 10 b depicts actual network performance (interms of dropped and blocked calls) of both a system known prior to thepresent invention and a system according to the present invention. FIG.10 c depicts actual network performance of both a system known prior tothe present invention and a system according to the present inventionwith respect to blocked call percentage.

In general, the present inventors anticipate that at no time during any24-hour period will the system of the present invention be unused. Eachuser segment is expected to use at least ¼ minute of service during anygiven hour. Busy hour usage was spread only between the hours of 6 AMand 10 PM. Usage patterns from 11 PM to 5 AM are expected to be lower.Table 6, below, illustrates the population by user segment, ascontemplated by the present inventors for a typical installation.

TABLE 6 Population by User Segment Segment Number Percentage BreakdownTeens 23,601 4.30% Ages 15-17 College Students 30,724 5.60% Ages 18-21Spouse 65,086 11.85% ½ of Married People >35 yrs. Old New Wage Earner92,890 16.92% Ages 22-34 Blue Collar 96,450 17.57% Ages 35-64 with HouseHold income <$75K Other 240,291 43.77% Ages 0-1 (108,697) Retired ≧ 65(77,997) Ages 35-64 with income ≧ $75K (23,452) Ages 35-64 with roommate(30,145) Total 549,042 100.00%

FIG. 11 illustrates the usage of the teen segment. In the teen segment,the inventors contemplate that the primary use is after school and intothe later parts of the evening. When teens get on the phone, they willstay on it for extended periods of time. They will use their phones inthe morning to arrange rides to school, during the day in general, andduring lunch times. As illustrated in FIG. 11, the peak usage is betweenapproximately 3 pm and 5 pm.

FIG. 12 illustrates the usage of the college student segment. The usersin this segment tend to awake later in the morning than other users, andtypically stay up later at night than other segments. Accordingly, theirphone use reflects this pattern. Typically, these users will use theirphone during the later periods of the day and scattered throughout theday depending on an ever changing schedule. As illustrated in FIG. 12,the peak usage is between approximately 4 pm and 8 pm.

FIG. 13 illustrates the usage of the segment represented by secondaryincome spouses. The primary usage in this segment occurs while childrenare in school between the hours of 8 AM and 2 PM, when users talk tofriends and run errands. The users in this segment will also havesporadic usage in the evenings to communicate with other working familymembers and friends. As illustrated in FIG. 13, the peak usage isbetween 4 pm and 8 pm.

FIG. 14 illustrates the usage of the segment represented by new wageearners. This group is typically compromised of young professionals.These users do not hesitate to use the office phone during the day, butwill use their wireless phones on the way to work, during the lunchperiod and directly after work to stay in contact with a large group offriends. As illustrated in FIG. 14, the peak usage is between 4 pm and 8pm.

FIG. 15 illustrates the usage of the segment represented by blue collarworkers. This segment will use their phones on their way to and fromwork, during the noon period and in the early evening. They will nothesitate to use the office phone, if available, during working hours. Asillustrated in FIG. 15, the peak usage is between 3 pm and 8 pm.

FIG. 16 illustrates the usage of the segment that can best be describedas “other.” This segment is comprised of a mix of people. Their usage isspread across the day with heavier usage during the noon and eveninghours.

FIG. 17 is a graph of the usage distribution for all users comparing themodified model with the actual data.

FIG. 18 is a chart illustrating the unexpected success of the presentinvention. FIG. 18 illustrates some of the substantial advantages of apreferred embodiment of the present invention over systems of the typeknown prior to the present invention. When the Chattanooga system wasdeployed as a Cricket system in early 1999, it included very fewimprovements and enhancements of the present invention. During thecourse of the first year of deployment, numerous improvements andenhancements were made to implement the present invention in theChattanooga market. Specifically, numerous additions to the operationalfeatures were added during mid- to late-1999, and the network componentswere cut over to a network operating system of the present invention atthe end of January 2000.

In spite of the fact that many of these features were present for only aportion of the first year of operation, the Cricket system achieved a7.7 percent market penetration in 12 months of operation of theChattanooga market. The costs were less than $230.00 per customer. Thesupport costs per average subscriber were approximately $5.60 and theoperations costs per minutes of use was 1.3 cents. These results amplifythe substantial and unexpected results achieved by the presentinvention. On each of these criteria, the performance of the presentinvention, both on a market penetration basis and a cost reductionbasis, far out strips the performance of systems of the type known bythe present inventors prior to the present invention.

Part of the reason for the unexpected and substantial success of thepresent invention is that it meets a long felt and unmet need of themarket for wireless communication services. While operators of systemsof the type known prior to the present invention have focused primarilyon price-insensitive business and heavy users, large segments of themarket who would use wireless communication services at a lower pricepoint have been ignored or under-served. Most of this under-servedsegment readily uses wireline telephony of the type offered by theIncumbent Local Exchange Carriers (ILEC) and Competitive Local ExchangeCarriers (CLEC). The price point, however, for these types of servicesis traditionally much lower than that of wireless communication servicesof the type known prior to the present invention.

Table 7 illustrates a comparison of the pricing and services and depictsome of the reasons why the present inventors believe their businessmethod, operations method, and network have been so successful. FIG. 7compares the services, typical minutes of use per month, and averagerevenue per user of various types of telephony systems, namely,Cellular, PCS, the present invention, and traditional fixed wirelineservice available through ILEC's and CLEC's. This comparison revealsthat, on these criteria, the present invention approximates the level ofservice available from traditional wireline service at a cost thatapproximates traditional wireline service, while offering many of thesame features of other wireless communications networks. The presentinventors believe that these features explain, at least in part, thelong felt need, and substantial and unexpected success of the presentinvention in the market place.

TABLE 7 Product Comparison Pricing Product Service MOUs ARPU CellularWide footprint with feature-rich service in digital footprint 100 $20-22coverage area and analog services in the rest of the covered 200 45area. Nationwide roaming available. Voice quality varies 500 100 andcoverage is highway-focused. 1000 200 PCs Reasonable digital footprintwith rich feature set. Large 100 $20-22 roaming footprint available withgood voice quality. 200 40 500 90 1000 160 PCP Regional digital coverage(local and toll) of areas where the 100 $28 user lives, works, shops,and plays with attaching major 200 28 artery coverage. Limited featureoffering of those services 500 28 most wanted. No roaming. 1000 28 ILEC/Fixed traditional wireline service with local service and rich 100 $22CLEC feature set. Toll services and extra-although nominal charge 200 22and low penetration of services (call waiting, call forwarding, 500 22conference and voice mail). 1000 22The present inventors believe that the unique combination of thebusiness method, operations method, and network enables the user toderive a level of service that closely approximates that of theirwireline telephone service, at a cost that is close to their wirelineservice, yet with enjoying the features of a wireless telecommunicationssystem. These benefits have not been offered or obtained from any of thesystems of the type known by the present inventors prior to the presentinvention.

The cost efficiency of the present invention is gained in four discreteways. First, the technology employed by the present invention is, in theview of the present inventors, the best available technology for runninga wireless communication system. Second, the present invention uses theinherent advantages of CDMA technology at its best. Systems capacity isloaded and operated at a high level. This allows the system to exploitthe air interface at an optimal level. Third, CDMA system closely tracksminutes of use from a wireline operation model. This allows the CDMAtechnology to achieve several of the advantages of fixed applications.Fourth, the CDMA system avoids many of the issues that plagued priorattempts to introduce high capacity service, such as the PHS systemdiscussed above. Instead, CDMA provide high voice quality and coveragesimilar to mobile service offerings of the type known prior to thepresent invention.

Table 8 compares mobile systems of the type known prior to the presentinvention, standard wireline systems, and the system of the presentinvention on a number of criteria.

TABLE 8 Comparative Performance Mobile Wireline Present InventionBusy-hour Erlangs Business 20 me 80 me  0 me Residential 10 me 50 me 50me Minutes of Use (Average/Month) Business 200-300    ~2000  0Residential <150  ~900 950 Peak-hour System 17-20% 10-12% 10-12% Traffic

In certain preferred embodiments to the present invention, the presentinventors consider the link budget of the network of the presentinvention to be a key network planning parameter. Another feature of thepresent invention that distinguishes the invention from prior knownsystems is the deployment of a second or third carrier frequency uponlaunch of the network or shortly thereafter. As noted by Webb, thegenerally accepted approach of wireless system operators prior to thepresent invention was to install the minimum capacity necessary toservice the expected subscriber base and not to boost capacity untildemand had saturated the system, requiring capital improvements. Thepresent inventors, in contrast, designed their system for capacity, asopposed to geographic coverage. In order to achieve the highest capacityutilization, particularly in densely populated areas of the network, asecond or even a third carrier frequency may be added from launch of thenetwork of shortly thereafter. The link budget of the network of thepresent invention reflects these facts.

In a preferred embodiment of the present invention, the EB/NO equals 5.5db. This assumes reduced mobility and increased network capacity. Themaximum number of users per sector is normally 15 for a mobile phonesystem of the type known prior to the present invention. In contrast,the maximum number of users per sector of the present invention is 19and the average number 12.6.

Similarly, the coverage design conditions of the present inventionentail the use of a higher decibel level than in prior known systems. Ina preferred network of the present invention, the in-home designcoverage condition is 12-15 db. Similarly, in building coverage ispreferably designed at 18 db.

The present inventors have also been able to contain costs through theuse of centralized cost control techniques. By centralizing theoperation of a number of the cost centers of the wireless communicationsnetwork, the present inventors have been able to isolate costs andprocedure. In various preferred embodiments of the present invention,procedures are standardized, which enables the operator to reduce costsin order to achieve some of the advantages of the present invention.FIGS. 21 through 34 depict various standardized processes of the backoffice operation of a preferred embodiment of the present invention.FIG. 21 depicts one such method of standardization. FIG. 21 is aflowchart depicting how the cost center of the back office of anembodiment of the present invention routes and handles call traffic. Theinvention incorporates a series of process flows addressing variousissues such as: adding phones; removing phones; transferring;suspending; long distance; restoring phone service; activating andreactivating a phone; returns; and purchases.

FIG. 22 is a flowchart depicting the process for set up and activation.The goal of the process is to provide service in one-call resolutionwherever possible. FIG. 23 depicts a process for adjusting the financialaspects of an account, including posting credit card payment,accrediting an account, crediting phone service, or adding a charge toan account. FIG. 24 is a flowchart depicting how to add a phone to anaccount in a preferred embodiment of the operation method of the presentinvention. FIG. 25 is a flowchart that explains how to change generalinformation on an existing account in a preferred embodiment of thepresent invention. The process is complete when the subscriber'sinformation has been verified for accuracy and the system has beenadjusted. FIG. 26 depicts the process for changing a phone number andadjusting acceptance of the optional features offered by the wirelesssystem operator in a preferred embodiment of the present invention. FIG.27 depicts the process for changing credit card information in apreferred embodiment of the present invention. Similarly, FIG. 28depicts the process for changing recurring credit card paymentinformation in a preferred embodiment of the present invention. FIG. 29is a flowchart depicting the process for transferring a phone, in apreferred embodiment of the present invention.

One of the features of the present invention that enables the systemoperator to maintain at cost is the elimination of accounts receivableand collections. This is accomplished through billing and payment inadvance of receipt of the services.

The present inventors have found that it is not sufficient simply toprebill and require prepayment. In the absence of affirmative steps toprevent accrual of bad debt, back office costs can still becomeunnecessarily high. In a preferred embodiment of the present invention,service is terminated within a short period of time after the beginningof the month, if the user has not in fact prepaid their service for thatmonth. Typically, in a preferred embodiment of the present invention, ifa user has not paid by the fifth day of the month, services terminatedand the account is “hotlined.” FIG. 30 depicts the process of hotliningand the process of restoring hotlined service to an account. Since thehotlining and restoration is strictly a payment process on the part ofthe caller, security code verification is unnecessary, further reducingback office costs. An account may be hotlined either voluntarily orinvoluntarily in the preferred embodiment of the present invention.

FIG. 31 depicts the process for removing a phone from a multi-phoneaccount. FIG. 32 depicts the process of disconnecting a phone from asingle phone account. Another key feature that the present inventorshave found has helped reduce back office costs is to detail as many ofthe frequently asked questions as possible, and enable the call centerto anticipate inquiries. FIG. 33 depicts a process for dealing withfrequently asked questions and updating the standardized list offrequently asked questions when call center personnel encounters issuesthat have not been previously covered.

Another key component for reducing back office costs and achieving thecost advantages of the present invention is a reduction in the number ofbilling inquiries. This is accomplished in a preferred embodiment of thepresent invention by eliminating detailed call records. Most of the callcenter call traffic relates to questions about specific calls.Elimination of detailed records eliminates that call traffic and of theassociated costs. FIG. 34 is a flowchart that depicts the steps involvedin handling billing questions, in a preferred embodiment of the presentinvention.

The present inventors believe that by standardizing as many of the backoffice and call center processes as possible, and imposing rigorousquality control, the costs associated with operating the back officecomponent of the wireless communications network can be reduceddramatically providing a number of the advantages of the presentinvention.

Adapting an Existing Network Infrastructure to the Business Model of thePresent Invention

The present inventors anticipate that in view of the distinct andsubstantial advantages of the present invention, operators of networksof the type known prior to the present invention may adapt theirexisting network to the business model, operation method, and/or networkdesign of the present invention, thereby expanding their level ofservice to customers and deriving substantial additional revenues. Dueto some of the differences in the operations method in network design ofthe present invention relative to prior known wireless communicationsystems, re-engineering the cost structure of an existing network hascertain distinct advantages. The Assignee of the application is aware ofseveral competitors who have, after launch of Assignee's services,attempted to copy Assignee's fixed price, unlimited use offering.

FIGS. 20 a and 20 b depict several of the discreet steps that may beused in a preferred process of re-engineering the cost structure of anexisting network to achieve some of the advantages of the presentinvention. For example, the improvements in network build-out wouldresult in lower capital costs. Improvements in network operations of thepresent invention would reduce substantially the back office and callcenter costs, which results in lower network operating costs. Customeracquisition costs would also fall, due to the rapid, simple sales cycleand direct distribution to a larger pool of prospective customers. Thistoo would result in lower cost per gross add. Similarly, with respect tocustomer service, the high capacity and quality of the network,simplified billing, and reduced reliance by the customer on the backoffice operations results overall in lower back office costs.

Nonetheless, upgrading an existing PCS-type network to provide adequatecapacity for the expected first year subscribers for the wirelesscommunication service of the present invention may require substantialcapital investment. Assuming approximately 6 percent penetration, inaddition to the existing mobility subscribers, upgrading may requireincremental capital expenditures equal to approximately 70 percent ofthe network's original cost.

Implementing an offering of the type of the present invention inaddition to an established brand of wireless service would tend todilute and devalue the existing brand. Creation of a separate brand forthe offering of the present invention, on the other hand, would avoiddilution to and devaluation of the existing brand. It tends to be verydifficult for a single organization to effectively implement differentmarketing strategies aimed at different audiences. Creating a separatebrand and distinct organization, therefore, would more likely succeed byvirtue of its single market focus. The offering of the presentinvention, however, may lead to migration of high ARPU mobilitycustomers to the lower ARPU plan of the present invention. In addition,the service offerings of existing wireless communications networks ofthe type known prior to the present invention are focused in a differentmanner than that of the present invention. Existing mobility servicestend to require broader geographic coverage and enhanced features. Incontrast, the wireless communication services of the present inventionrequire narrow geographic coverage, relatively limited features, andhigh capacity.

Table 9 depict some of the assumptions and differences between thepresent invention and a typical PCS based system

TABLE 9 Key Assumptions in Converting a PCS-Type System to the System ofthe Present Invention Assumption/Criterion PCS-Type System PresentInvention Covered Pots 1.0 m 1.0 m Covered Area 1,200 km sq. 1,200 kmsq. Cell Sites Coverage 96 96 Cell Sites Highway 10 0 Minutes of Use 3251000 Busy Hour Days 22 24 Percent of Calls Blocked 12% 8% Erlangs PerSubscriber 0.030 Erlangs 0.055 Erlangs

Table 10 depicts some of the capital expenditure required to convert anexisting network of the type known prior to the present invention to thebusiness method, operation, and/or network of the present invention.

TABLE 10 Capital Expenditure to Convert an Existing PCS-Type System toWireless Communication Network of the Present Invention Present PCS-TypeSystem PCS-Type System Present Invention Invention Cell Sites Coverage96 Additional Carriers 155 Highway Sites 10 Additional  $2.6 MOptimization Total Capital $473 M Total Capital $33.6 M ExpenditureExpenditureTherefore, the present inventors anticipate that it could cost 70percent more in terms of capital expenditure to convert a wirelesscommunications network of the type known prior to the present inventionto the business method, operation method, and/or network of the presentinvention.

In fact, other operators have attempted to copy the business method,operations method, network, and/or system of the present invention. Inthe Fall of 2000, BellSouth, AllTel, and US Cellular, each announced thelaunch of unlimited service plans in the Knoxville, Tenn.; Tucson,Ariz., and Albuquerque, N. Mex.; and Knoxville, Tenn. markets,respectively. AllTel's offering, in particular, provides evidence ofsecondary considerations supporting the patentability of the presentinvention.

Although AllTel had previously stated that they would not launch anoffering of the type of the present invention, upon learning details ofthe Assignee's success using the business method, operations method,network, and system of the present invention, AllTel copied some of thecritical features of the invention.

In particular, AllTel abandoned its prior skepticism of the inventionand adopted several features of the invention including, withoutlimitation: flat rate billing for unlimited service at a low level ofARPU; bill-in-advance and pay-in-advance service; and separate branding,along with other features.

Applicant does not assert that all prepaid plan offerings would use thepresent invention. For example, Freedom Wireless, the assignee of U.S.Pat. No. 6,157,823, recently sued a number of operators for use of aprepaid subscriber account feature. Nonetheless, prepaid service for apredetermined number of minutes of use could be employed along withother of the elements or embodiments of the present invention, in lieuof the flat rate, unlimited use elements of the present invention.

It will be apparent to persons of ordinary skill in the art that variousmodifications and variations may be made to the business method,operations method, network and/or, system of the present invention,without departing from the scope or spirit of the invention. Forexample, each of the principal embodiments of the invention may be usedseparately or in conjunction with one or another. Further, each of thevarious elements identified with each embodiment may be used eitherseparately, in conjunction with one another, as well as in conjunctionwith elements of other or both of the remaining embodiments of thepresent invention. Moreover, depending on the type and disposition ofthe system an operator is running, certain of the embodiments and/orelements may provide substantial or little relative additional benefit.The present inventors do not intend that it is necessary to adopt anyparticular embodiment or all or any particular elements of any one ormore embodiments of the invention. Rather, depending on thefunctionality and benefits desired, the operator may use the inventionsin various combinations of the embodiments and elements of theinvention. Various changes may be made in the network architecture,systems, and components of the present invention, as well as in thetechnology employed and standards governing the operation of the system.The present inventors intend that their invention would provide a viablebusiness model to improve wireless communication services, in spite ofany differences in network architecture, technology standards, orcomponents, either as they exist today or as they may be developed inthe future. Thus, it is intended that the present invention cover themodifications and variations of the invention provided they come withinthe scope of the appended claims and their equivalents.

1. A method of providing wireless communications services to asubscriber in return for payment of a charge, comprising: determining aflat rate charge for the services; determining a period of time withinwhich the flat rate charge shall apply; determining the subscriber'scharge based upon the flat rate charge; providing unlimited access tothe wireless communications services for the flat rate charge during thedetermined period of time; and receiving payment of the subscriber'scharge substantially before the wireless communications services arerendered to the subscriber; wherein the wireless communications servicesinclude voice services and data services.
 2. The method of claim 1,further comprising determining the value of the flat rate withoutrelation to minutes of use of the wireless communications servicesduring the period of time.
 3. The method of claim 1, further comprisingdetermining the value of the flat rate without relation to the number ofcalls made or received by the subscriber during the period of time. 4.The method of claim 1, wherein the period of time further comprises apredetermined period of time.
 5. The method of claim 1, furthercomprising charging a flat rate for the period of time that isproportional to a rate of less than or equal to about $50 per month. 6.The method of claim 1, further comprising charging a flat rate for theperiod of time that is proportional to a rate of less than or equal toabout $30 per month.
 7. The method of claim 1, further comprisingallowing use at a rate for the period of time that is proportional to arate of more than or equal to about 300 calls per month.
 8. The methodof claim 1, further comprising allowing use at a rate for the period oftime that is proportional to a rate of more than or equal to about 600minutes of use per month.
 9. The method of claim 1, further comprisingallowing use at a rate for the period of time that is proportional to arate of more than or equal to about 1000 minutes of use per month. 10.The method of claim 1, wherein the data services consist of a ShortMessage Service (SMS).
 11. The method of claim 1, wherein at least aportion of the voice services are provided using voice over IP (VoIP).12. The method of claim 1, wherein the data services include informationdownload services for retrieving Internet content.
 13. A method ofproviding wireless communications services to a subscriber in return forpayment of a charge, comprising: determining a period of time for whicha flat rate charge for use of wireless communications services shallapply, wherein the wireless communications services comprise dataservices; providing, to a subscriber, unlimited access to the wirelesscommunications services for the flat rate charge during the determinedperiod of time; and receiving, from the subscriber, payment of the flatrate charge before access to the wireless communications services isprovided to the subscriber.
 14. The method of claim 13, wherein thewireless communications services further comprise voice services. 15.The method of claim 14, wherein at least a portion of the voice servicesare provided using voice over IP (VoIP).
 16. The method of claim 13,further comprising: determining a geographic area in which thesubscriber substantially lives, works, and plays; and providing thewireless communications services only in the determined geographic area.17. The method of claim 13, wherein the data services comprise a ShortMessage Service (SMS).
 18. The method of claim 13, wherein the dataservices include information download services for retrieving contentfrom a network.
 19. The method of claim 18, wherein the networkcomprises the Internet.
 20. The method of claim 13, wherein the dataservices include access to basic data information.
 21. The method ofclaim 13, further comprising determining the value of the flat ratewithout relation to an amount of use of the wireless communicationsservices during the period of time.
 22. The method of claim 13, whereinthe data services are provided using Code Division Multiple Access(CDMA) technology.